- IT spending will grow in 2025, but the rate of growth isn’t hugely more than that of 2024
- Data center systems are by far the biggest driver for growth in the market
- Businesses are worried about global economic uncertainties
According to the latest research from Gartner, global IT spend is projected to reach $5.43 trillion in 2025, marking a healthy 7.9% increase compared with 2024, and it’s all because of our insatiable appetite for AI.
The research revealed how data center systems are expected to grow by a staggering 42.4%, making this the fastest-growing segment in IT spend.
In fact, AI continues to drive investment, with AI-optimized servers and other infrastructure proving extremely popular. By 2027, AI-optimized server spending along could be three times higher than traditional server spend, says Gartner.
AI is making us spend more than ever on IT
Although no other sector comes near data center system growth, software spend could also exceed the overall IT average of 7.9%, growing by 10.5%. While lower than the average, devices (up 5.4%), IT services (up 4.4%) and communication services (up 2.1%) are all set to account for even more cash this year compared with last.
However, total worldwide IT spending isn’t set for much more growth compared with last year, when it stood at 7.4%. Gartner says this could be influenced by ongoing geopolitical uncertainty. A so-called uncertainty pause seems to be emerging, with new projects facing delays due to economic and geopolitical caution instead of budget cuts.
The research indicates that budgets remain allocated, but spending is instead being strategically reviewed.
Moreover, IT hardware and infrastructure could face the biggest effects due to fluctuations in pricing and supply chains, with recurring services like cloud remaining more stable. IT services and communication services are both expected to see lower growth this year compared with 2024.
Gartner Distinguished VP Analyst John-David Lovelock explained: “While there is a business pause on net-new spending due to a spike in global uncertainty, the effect is subsumed by ongoing AI and generative AI digitization initiatives.”
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