Did you know Global IT Spending to Reach $5.61 Trillion in 2025, Driven by AI Investments

 

According to a new report by Gartner Inc. worldwide IT spending is going to be increased by 9.8% from 2024 to reach $5.61 trillion in 2025. VP analyst at Gartner, John-David Lovelock, says that budgets for CIOs are increasing and this growth will only be able to cover rising costs and not actual spending capacity. The rise in IT budget is only going to be nominal in 2025 which means that growth in IT spending is going to be lower than what is expected. CIOs will have to scale back or defer their original budget plans because of higher costs in all IT categories.  

Category	2024 Spending (USD Millions)	2024 Growth (%)	2025 Spending (USD Millions)	2025 Growth (%)
Data Center Systems	329,132	39.4	405,505	23.2
Devices	734,162	6.0	810,234	10.4
Software	1,091,569	12.0	1,246,842	14.2
IT Services	1,588,121	5.6	1,731,467	9.0
Communications Services	1,371,787	2.3	1,423,746	3.8
Overall IT	5,114,771	7.7	5,617,795	9.8

Generative AI will also account for a portion of IT spending which will lead to double digit growth in 2025 especially in areas like software and data centers. Most of the IT spending will be driven by hardware needed for AI even though direct focus on generative AI isn't being prioritised right now. According to Lovelock, even though CIOs are making many investments on technology, the expectations are still declining.

Spending on AI-optimized servers is going to reach $202 billion in 2025 while spending on traditional servers will decline while 70% of the spending on AI-optimized servers will be from IT services companies and hyperscalers. By 2028, AI optimized servers worth $1 trillion are going to be operated by hyperscalers.