Global IT spending is set to hit $5.43 trillion in 2025, a 7.9% increase over 2024, according to Gartner. Despite an ongoing “uncertainty pause” in new IT investments due to geopolitical and economic concerns, AI-driven initiatives are fueling growth.
Key drivers include soaring demand for AI-ready infrastructure — especially data centers — and continued investment in cloud and managed services. Data center spending alone will grow over 42%, while software and IT services remain strong despite a deceleration.
“This isn’t about budget cuts — it’s a strategic pause. AI continues to pull spending forward, particularly in infrastructure,” said John-David Lovelock, Distinguished VP Analyst, Gartner.
A recent Gartner survey of 252 global executives revealed:
1. 62% believe AI will define competitive advantage for the next decade.
2. 61% started 2025 stronger than 2024.
3. Only 24% expect to end the year ahead of their goals.
The report highlights a growing focus on practical, plug-and-play GenAI use cases, with enterprises becoming more cautious and outcomes-driven. Meanwhile, hardware sectors face pressure from supply chain issues and pricing, even as cloud and recurring services remain resilient.