Spending is expected to rise further to AUD $1.5 billion in 2027 as businesses continue buying cloud infrastructure for AI use across applications and workflows. Adrian Wong, Director Analyst at Gartner, said Australian organisations are changing how they allocate cloud spending as AI projects move into broader use. "AI‐driven demand for high‐performance cloud infrastructure is changing how Australian organisations are prioritising cloud spending this year. Global demandAcross the broader cloud market, Gartner forecasts total worldwide IaaS spending of USD $287.3 billion in 2026, up from USD $222.2 billion in 2025. Worldwide AI-optimised IaaS spending is forecast at USD $42 billion in 2026 and USD $66 billion in 2027, while Australian spending is projected at AUD $946 million in 2026 and AUD $1.5 billion in 2027.