In 2025, enterprises around the world are navigating a difficult set of circumstances that include unpredictable macroeconomic factors, tense geopolitical situations, and shifting consumer behavior. At times like this, it can be a challenge to plan for the future. So where are tech leaders focusing their technology and IT budgets in 2026? Our 2026 Budget Planning Guides lay that out based on the results of Forrester’s recent Budget Planning Survey.

For technology executives in 2026, spending priorities vary by region, but globally, it’s clear that increasing staff is a low priority due to AI-driven efficiency gains. Across all regions and most sectors, staffing was the area where the lowest percentage of respondents expected to increase spend. But let’s look into each region individually to find out where technology executives will be spending their budgets.

North America

In North America, tech decision-makers are most focused on investing in cloud, data centers, and security. In fact, over 75% expect to grow spend in all three of these areas in 2026. Explosive use of AI is driving growth in cloud and data center spend, while high-profile security breaches and emerging security threats like post-quantum and bring your own AI (BYOAI) are forcing leaders in North America to spare no expense when it comes to security.

Europe

The focus on cloud and security is similar in Europe, as data sovereignty and security top the list of areas where tech decision-makers indicate budgets will grow. With cloud, a heavy focus on data sovereignty is driving investment toward private cloud and industry/sovereign-specific public cloud offerings. But growth in data center spend in Europe is expected to be slightly lower than in North America and APAC due to the less mature European market, even as Europe works to develop its own proprietary data center infrastructure.

APAC

APAC is expected to see the highest rate of IT spending growth in 2026. According to our survey, 88% of tech decision-makers anticipate growth in IT spend in 2026, compared to 82% for both North America and Europe. They have slightly different priorities, as well: Tech decision-makers in APAC are more focused on software and digital strategy than their counterparts in North America and Europe. This reflects a broader shift as the region moves from being a fast adopter to a bold innovator, setting global trends in areas such as multilingual generative AI and humanoid robotics. After security (25% of respondents), the most significant challenge for APAC tech leaders when executing their software strategy remains lack of alignment between IT and the business (20% of respondents). This alignment is key because it ensures that technology investments translate into tangible business and customer value.

Success In 2026 And Beyond

So what do technology executives and leaders need to do to win in 2026? In our new Budget Planning Guide 2026: Technology Executives, we recommend focusing investments on cloud and data center investments. Thanks to AI’s impact on future cloud demand and capacity, along with enterprises becoming more savvy with cloud cost management, there are a lot of moving parts with cloud that tech leaders need to optimize.

Also focus on getting benefits from your AI program. AI should allow you to reallocate 10% or more of your workforce — just make sure to be strategic about what your new normal operating model should look like. Our latest research on successful operating model transformation can help — stay tuned for more on AI-driven operating model redesign coming soon.

Lastly, don’t forget to look beyond 2026 and continue to experiment with technologies that could benefit your organization in the future. Our Budget Planning Guide calls out several areas where you should continue to experiment. For example, have you thought about how autonomous mobility could benefit your organization’s operational processes? Most people know it as self-driving cars, but as autonomous mobility finds more enterprise use cases, there are significant implications not just for adopters but for downstream suppliers and service providers. Another emerging technology to keep an eye on is vertical-specific edge intelligence. Tech leaders should prepare now for the impact that advancements in chipset functions, 5G networks, and on-device/on-chip ML models will have over the next few years on data from the edge for your specific industry.

Next Steps

Interested in more findings from Forrester’s Budget Planning Survey, 2025, along with more bold calls from our experts on where to invest, divest, and experiment in 2026? Download our complimentary copy of the 2026 Budget Planning Guide for technology executives and the accompanying worksheet to help you put the report’s recommendations into action. Then, register for our upcoming webinar, where our analysts will discuss how CIOs and CISOs can align their budgets and priorities to ensure success in 2026.