Information technology (IT) spending in Europe is expected to reach $1.28 trillion by 2025, an increase of 8.7% from the $1.18 trillion projected for 2024, according to the latest report from analytics firm Gartner. This growth will be driven by a combination of factors, including increased investment in infrastructure related to artificial intelligence (AI) and a rise in the adoption of cloud services and enterprise software.
Growth Driven by AI and Innovation
According to John-David Lovelock, Vice President and Distinguished Analyst at Gartner, spending on data center systems and AI-optimized technologies will lead investments in 2024 and 2025. In 2024, spending on servers is expected to grow by 25%, reflecting the high demand for infrastructure to train generative AI models, and in 2025, this trend is expected to continue with a more moderate growth of 11%.
“European organizations are adopting generative AI solutions not only to remain competitive but also to accelerate their innovation. By 2025, the focus will shift from developing in-house solutions to implementing partner-offered solutions,” Lovelock commented.
Gartner also projects that spending on AI-related IT services will grow from $78 billion in 2024 to $94 billion in 2025, further reinforcing the central role of AI in digital transformation.
Table 1. IT Spending Forecast in Europe (millions of US dollars)
| Segment | 2024 Spending | 2024 Growth (%) | 2025 Spending | 2025 Growth (%) |
|---|---|---|---|---|
| Data Center Systems | 50,043 | 11.1 | 54,410 | 8.7 |
| Devices | 134,239 | 6.4 | 146,700 | 9.3 |
| Software | 254,554 | 11.4 | 288,163 | 13.2 |
| IT Services | 448,572 | 6.6 | 489,767 | 9.2 |
| Communications Services | 292,280 | 3.0 | 302,705 | 3.6 |
| Total IT Spending | 1,179,687 | 6.8 | 1,281,744 | 8.7 |
Source: Gartner (November 2024)
Key Trends by Segment
- Software and IT Services: These segments will experience the fastest growth, with increases of 13.2% and 9.2%, respectively, in 2025. Software will benefit from the shift to cloud-based solutions and AI-optimized collaboration tools.
- Data Center Systems: Spending on infrastructure, such as AI-optimized servers, will grow by 8.7% in 2025. The need for high-performance computing to support generative models and other critical workloads will be key in this category.
- Devices: This segment will see a growth of 9.3% in 2025, reflecting the technological refresh of personal and corporate devices.
- Communications Services: Although growth is more modest at 3.6%, this segment remains relevant due to the expansion of networks and enterprise connectivity.
The Impact of Data and AI
The Gartner report highlights that IT spending in Europe will record the highest annual growth rate since 2021, driven by increased investment in AI and the infrastructure that supports it. This trend reflects the central role that IT plays in transforming business models and improving enterprise productivity.
Analysts also note that the focus on AI is not only enhancing operational efficiency but is also opening new opportunities in areas such as scientific discoveries, business innovation, and personalized services.
Europe Leads Technological Innovation
The report concludes that European CIOs and IT leaders are adopting an aggressive investment strategy to ensure business resilience and capture new opportunities in an increasingly digitized market. The combination of AI, cloud services, and enterprise software will significantly advance the region’s technological capabilities by 2025.
Source: Gartner