Businesses and consumers could face higher computer and device prices through 2027 as demand for artificial intelligence (AI) infrastructure drives up memory costs, according to Gartner Inc., a business and technology insights company.
Gartner forecasts worldwide IT spending will reach $7.35 trillion in 2027, up 15% from 2026. Data centers are driving much of that growth, but the increasing cost of hardware means higher spending does not necessarily reflect stronger demand from buyers.
“This ‘memflation’ effect is expected to persist through 2027 before hardware pricing begins to stabilize,” said John-David Lovelock, an analyst at Gartner. “While higher average selling prices continue to support spending growth, the resulting pressure on affordability is expected to suppress end-user demand throughout the forecast horizon.”
Over the past 12 months, demand from data center systems has caused memory prices to more than double. Those increases are spreading across the supply chains for storage, servers, networking equipment, PCs, and other devices.
For buyers, the forecast points to continued pressure on technology budgets. Businesses planning to replace computers or expand their systems could face higher equipment costs, while consumers may find new devices harder to afford.
Gartner expects spending on data center systems to rise 55.5% to about $1.37 trillion in 2027. This follows estimated growth of 73.8% in 2026, showing the scale of investment going into the computing equipment needed to support AI.
The company said AI infrastructure and AI software are shaping the next $1 trillion in IT spending growth. Organizations are investing in servers designed for AI, rented computing resources, and software platforms as they move toward wider use of the technology.
Spending on infrastructure as a service, which allows businesses to rent computing resources instead of owning the equipment, is forecast to increase 25.7% to $367 billion. Software spending is expected to grow 14.6% to about $1.68 trillion.
Device spending is projected to rise 8.1% to $916 billion. Services spending is forecast to grow 4.9% to about $1.63 trillion, while communications services will increase 2.9% to about $1.39 trillion.
Gartner said funding from major cloud providers, private investors, and technology suppliers is helping support AI infrastructure expansion. The equipment and facilities behind AI are increasingly attracting investment in their own right, alongside the software they run.
The forecast draws on sales analysis covering more than 1,000 technology vendors, supported by primary and secondary research across the global IT products and services market.