Is Worldwide IT Spending Set to Hit $5.43 Trillion This Year, Fueled by AI Infrastructure?
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Synopsis
Global IT spending is projected to soar to $5.43 trillion by 2025, driven by AI infrastructure despite geopolitical challenges. Gartner's recent report highlights a strategic pause in new investments, yet emphasizes the enduring demand for AI technologies. Discover how companies are navigating uncertainty while focusing on their competitive edge.
Key Takeaways
- Projected IT spending: $5.43 trillion in 2025.
- Growth rate: 7.9 percent increase from 2024.
- AI influence: Significant rise in AI-related infrastructure spending.
- Survey Insights: 62 percent of leaders view AI as crucial for competition.
- Market sentiment: Mixed outlook on future investments.
New Delhi, July 17 (NationPress) Global IT expenditure is projected to reach $5.43 trillion in 2025, marking a 7.9 percent rise from 2024, according to a report released on Thursday.
Despite a slowdown in business activity amid ongoing geopolitical tensions, investments in AI-driven infrastructure are anticipated to boost the IT sector, as forecasted by Gartner, a prominent IT consultancy.
John-David Lovelock, Distinguished VP Analyst at Gartner, remarked, "While there’s a temporary halt in net-new expenditures due to escalating global uncertainty, the impact is offset by persistent AI and generative AI (GenAI) digitization efforts."
The report indicates that although the growth of spending on software and services is expected to decelerate due to this ‘uncertainty pause,’ investments in AI-related infrastructure, particularly data center systems, are on the rise.
"Data centers are witnessing a surge propelled by GenAI, with spending on AI-optimized servers—which was nearly non-existent in 2021—projected to be three times that of traditional servers by 2027," Lovelock added.
This aligns with a Gartner survey conducted from March to May 2025, involving 252 senior executives across various industries in North America and Western Europe with enterprise-wide revenues exceeding $500 million. A striking 62 percent of respondents highlighted that AI will define competitive advantages in the next decade.
The report underscores that maintaining competitiveness is a key driver for enterprises to invest in technology and business transformations in a challenging landscape.
Lovelock further noted, "As GenAI approaches the stage of disillusionment, focus and spending are increasingly directed towards the functionality provided by established software vendors."
Since the onset of the second quarter in 2025, an “uncertainty pause” has emerged, characterized by a strategic halt on net-new initiatives across multiple departments, including IT.
This pause is attributed to intensified uncertainty and geopolitical risks. Consequently, the global corporate sector is adopting a more cautious stance, as organizations strive to mitigate adverse ramifications stemming from these complex challenges, the report revealed.
The Gartner survey indicated that 61 percent of enterprises began 2025 in a stronger position than the previous year, yet only 24 percent anticipate surpassing their 2025 objectives by year-end.
Point of View
It is evident that while geopolitical uncertainties pose challenges, the emphasis on AI investment demonstrates resilience and adaptability within the IT sector. The focus on competitiveness will not only drive technological advancements but also ensure that businesses remain agile in a rapidly evolving landscape.
NationPress
17/07/2025
Frequently Asked Questions
What is the projected global IT spending for 2025?
The projected global IT spending for 2025 is expected to reach $5.43 trillion, reflecting a 7.9 percent increase compared to 2024.
What factors are driving IT spending growth?
AI-oriented infrastructure investments are primarily driving growth in IT spending, despite some slowdowns due to geopolitical uncertainties.
How is generative AI influencing IT infrastructure?
Generative AI is significantly impacting IT infrastructure, with spending on AI-optimized servers expected to triple that of traditional servers by 2027.
What percentage of enterprises view AI as crucial for competition?
According to a Gartner survey, 62 percent of enterprises believe AI will define the future of competition over the next decade.
What is the current sentiment among enterprises regarding future investments?
While 61 percent of enterprises feel they are in a better position than last year, only 24 percent expect to exceed their 2025 plans.
