Subj : Global AI adoption to push IT spending beyond $5.4 trillion in 20
To   : All
From : TechnologyDaily
Date : Wed Jul 16 2025 13:15:08

Global AI adoption to push IT spending beyond $5.4 trillion in 2025

Date:
Wed, 16 Jul 2025 12:06:00 +0000

Description:
IT spend is rising, driven largely by data center systems, even though 
companies are reviewing budget allocation due to global tensions.

FULL STORY
======================================================================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." You might also like Check out the best cloud computing 
providers Investing big in AI? These are the best AI tools and best AI 
writers A quarter of applications now include AI, but enterprises still 
aren't ready to reap the benefits



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Link to news story:
https://www.techradar.com/pro/global-ai-adoption-to-push-it-spending-beyond-us
d5-4-trillion-in-2025


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