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---
title: South African IT spending surging as AI boom lands locally
description: South African IT spending is forecast to grow 19.8% in 2026 to $28.1-billion, outpacing the global rate of 14.2%, according to Gartner data shared exclusively...
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og:description: South African IT spending is forecast to grow 19.8% in 2026 to $28.1-billion, outpacing the global rate of 14.2%, according to Gartner data shared exclusively...
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# South African IT spending surging as AI boom lands locally

**[TechCentral](https://daily.dev/sources/techcentral)** · 6 min read · 0 upvotes · 0 comments

## Summary

South African IT spending is forecast to grow 19.8% in 2026 to $28.1-billion, outpacing the global rate of 14.2%, according to Gartner data shared exclusively with TechCentral. Data centre systems spending is set to nearly double locally (90.6% growth), driven by AI infrastructure buildout. However, the picture is nuanced: much of the spending increase reflects rising hardware costs rather than greater capability, with DRAM and SSD prices surging 130% and device shipments actually falling globally. South Africa also lags in cloud/IaaS adoption relative to global peers. Sub-Saharan Africa's broader ICT growth is more modest at 7.3% CAGR through 2030, with AI-specific spending growing fast but from a tiny base. The boom is concentrated in South Africa and is not a rising tide — budget shifts toward servers and AI infrastructure are squeezing traditional software vendors, as evidenced by IBM's 25% share price drop.

## Full article

daily.dev links to this article rather than hosting it. Read it at the original source: <https://techcentral.co.za/south-african-it-spending-surging-as-ai-boom-lands-locally/284295>

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Tags: [#ai](https://daily.dev/tags/ai), [#cloud](https://daily.dev/tags/cloud)

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