Gartner has raised its IT spending forecast for 2025, projecting a global investment of $5.43 trillion, which represents a 7.9% increase compared to 2024. Despite a backdrop of economic and geopolitical uncertainty, projects related to artificial intelligence (AI) and generative AI (GenAI) continue to be the main growth drivers.
“There’s a strategic pause in new investments due to global uncertainty, but this is offset by digitalization initiatives with generative AI,” explained John-David Lovelock, Gartner distinguished vice president.
Data centers lead growth
The category of data center systems is expected to grow the most, with a forecast of +42.4%, reaching $474.9 billion. This boost is due to heightened demand for AI-optimized servers, which will triple the investment compared to traditional servers by 2027.
Software spending will also be noteworthy, with a 10.5% increase, followed by devices (+5.4%) and IT services (+4.4%). Communications show a more modest growth of 2.1%, according to the report.
| Category | 2025 Spending (M$) | Growth (%) |
|---|---|---|
| Data centers | 474,883 | +42.4 |
| Devices | 759,615 | +5.4 |
| Software | 1,232,145 | +10.5 |
| IT services | 1,686,321 | +4.4 |
| Communications | 1,282,592 | +2.1 |
| Total IT | 5,435,555 | +7.9 |
Source: Gartner (July 2025)
AI as a long-term competitive driver
A Gartner survey of 252 senior executives in the U.S. and Western Europe reveals that 62% see AI as key to competitiveness in the next decade. Additionally, 64% plan to invest in technology and business transformation to survive challenging environments.
However, Lovelock warns of a rising skepticism: “GenAI is entering a phase of disillusionment. CIOs are now looking for practical functionalities and plug-and-play solutions rather than abstract promises.”
Strategic pause on new investments
Since Q2 2025, a “pause due to uncertainty” has been identified in net new spending. This does not mean budget cuts, as budgets remain allocated, but rather a conscious decision to postpone new investments amid economic and geopolitical volatility.
Only 24% of companies expect to finish the year above their initial plans, even though 61% started 2025 in a better position than 2024.
“It’s not about cutting, but about waiting. Meanwhile, recurring expenses like cloud services or managed services remain more stable,” Lovelock emphasized.
Sector and regional trends
Hardware and infrastructure segments are most affected by rising prices and logistical bottlenecks, while cloud solutions continue to maintain traction. Lovelock notes that AI is driving investments even in conservative sectors, due to the perception that falling behind could threaten competitiveness in the medium term.
Upcoming events and conclusions
Gartner will share more details at the Gartner IT Symposium/Xpo 2025, happening at multiple global locations:
- Gold Coast, Australia: September 8–10
- Orlando, USA: October 20–23
- Tokyo, Japan: October 28–30
- Barcelona, Spain: November 10–13
- Kochi, India: November 17–19
A key opportunity for CIOs and tech leaders
Gartner’s clear conclusion: competitiveness will be the primary driver of technology investment in 2025, even amid cautiousness. AI, data centers, and software will continue to be top priorities, while CIOs will need to navigate between technological promises and practical implementation realities.
via: gartner