Global IT spending to rise 10% in 2025

Worldwide IT spending is expected to rise 9.8 percent to US$5.61 trillion in 2025, according to Gartner.

Generative AI (GenAI) wil be a key driver pushing growth in segments such as data centre systems, devices and software, which are likely to see double-digit growth.

“GenAI is sliding toward the trough of disillusionment which reflects CIOs declining expectations for GenAI, but not their spending on this technology. For instance, the new AI ready PCs do not yet have ‘must have’ applications that utilise the hardware,” said John-David Lovelock, Distinguished VP Analyst of Gartner.

AI-optimised server spending should reach US$202 billion double that of traditional servers.

“IT services companies and hyperscalers account for over 70 percent of spending in 2025. By 2028, hyperscalers will operate US$1 trillion dollars’ worth of AI optimised servers, but not within their traditional business model or IaaS market. Hyperscalers are pivoting to be part of the oligopoly AI model market,” said Lovelock.

Photo: Google DeepMind

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