Sovereign cloud push drives European IT spending 

The Register reports that IT spending in Europe is projected to grow by 11% in 2026, reaching a total of $1.4 trillion, driven by significant investments in generative AI, sovereign cloud solutions, and cybersecurity.  

According to Gartner, this follows an 11.6% growth in 2025, bringing the market to $1.3 trillion by year's end. A key trend is the push for "cloud sovereignty," with 61% of surveyed CIOs and tech leaders in Western Europe planning to increase their use of local cloud providers due to geopolitical concerns.

John-David Lovelock, a Distinguished VP Analyst at Gartner, explained that Europe is focusing on "geo-repatriation," a part of the digital sovereignty movement seeking technology from companies "closer to home." Spending on generative AI is forecast to surge by 78% next year, while data center investment is expected to grow 38.2% in 2025, though this growth will slow to 18.8% in 2026.