6 Areas Where IT Spending Will Increase In 2025

Gartner recently released their forecast for IT spending in 2025. According to their projections, global IT spending will soar to a whopping $5.74 trillion by 2025. Gartner expects server sales to grow from $134 billion in 2023 to $237 billion in 2025 to $332 bullion by 2028.

John David Lovelock, Vice President Analyst at Gartner said in a statement, “It took 20 years for the cloud and outsourcing vendors to build up spending to $67 billion a year on servers. The demand of genAI will help nearly triple server sales from 2023 to 2028. Generative AI will easily eclipse the effects that cloud and outsourcing vendors had on previous years regarding data center systems.”

Generative AI will serve as a catalyst increasing demand for data centers which would push data center spending higher. Data center spending will grow by 15.5% in 2025. Interested in learning more about IT spending in 2025? This article will break it down for you. In this article, you will learn about six areas where IT spending will increase in 2025, according to Gartner’s prediction.

6 Areas Where IT Spending Will Increase In 2025

Here are six areas where IT spending will increase in 2025 according to Gartner’s forecast.

Data Center Systems: 15.5%

Running AI models and instances is resource intensive. Businesses need hardware resources such as data centers and powerful graphical processing unit clusters to run them smoothly. This will push the demand for data center systems to go up. This means that businesses need to pour money into these data center systems to meet their AI demand. Gartner expects an increase of 15.5% in data center system spending in 2025.

Expect this trend to continue as the demand for hardware powerring AI systems continues to grow. Shedding light on this trend, John David Lovelock said, “Data center systems saw a big increase from last quarter and a lot of that is due to the fact that data center systems have grown because hyperscalers are now really building out these AI-optimized data center offerings.”

Software: 14%

Just like hardware demand, demand for AI powered tools is also expected to rise in 2025. Gartner thinks that spending on software will grow by 14% in 2025. Most of this would go towards buying automation tools. 

John David Lovelock further adds, “Spending on these segments is expected to be on AI-related projects including email and authoring. This was a market that, despite its age and having been consolidated down to a small number of players, will add $6.6 billion to global spending in 2024 and $7.4 billion in 2025 due in part to generative AI products and services.”

Devices: 9.5%

Many businesses are still stuck with legacy systems. 2025 will be the year when they look to upgrade their technology infrastructure. Expect businesses to buy devices that can improve their efficiency and productivity. They will ditch the aging hardware as it is no longer capable of handling modern workloads. They will Vps server Provider which allows them the freedom to scale or upgrade to a dedicated server hosting from a shared server. Other businesses will migrate their workloads to the cloud. Gartner expects 9.5% increase in IT spending on devices in 2025.

Generative AI 9.3%

How can we forget generative AI, the hottest new tech on the block. According to Gartner’s prediction, Generative AI spending will grow by 9.3% in 2025. This might be a conservative estimate as 2025 is expected to be a transformative year for generative AI. Expect large language models to mature and agentic AI make it’s impact on enterprises around the globe.

Expect more and more enterprises to put their AI pilots into production and invest heavily in overcoming the weaknesses such as hallucinations, biases, security and privacy issues. Regulations will come into effect and guardrails would be set to prevent the possibility of model abuse.

The rapid pace of technological evolution in artificial intelligence means that the technology will mature quickly and find many more use cases. It will be able to perform more sophisticated tasks. Co-pilots will continue to reshape the way enterprises work and AI agents will continue to play a pivotal role in transforming that dream into reality.

IT Services: 9.4%

Disruptions and outages are common. It can have a negative impact on reputation as well as lead to financial losses. Businesses have also realized it and will spend 9.4% more of their IT budgets on IT service improvements in 2025, according to Gartner’s forecast. The longer a business takes to recover from the outage the more losses they will have to incur and reputation damage they have to deal with.

Investing in IT service improvements can go a long way in delivering an uninterrupted user experience. Some of this budget will go to improving IT service delivery processes while a portion of it will go towards hiring more service agents that can handle huge volumes of IT service queries. Enterprises will leverage automation to automate some of the service delivery processes in 2025.

Communication Services: 4.4%

With a major chunk of IT budget increases going to other areas, expect a small increase of 4.4% in communication services. Gartner forecast for 2025 IT spending shows a meager 4.4% increase in communication services. This is also important to keep every stakeholder in the loop and collaborate with them efficiently.

Conclusion

Gartner forecast for the future of IT spending looks promising. According to Gartner’s projection, IT spending will increase by $500 billion by 2025 and will reach an eye watering $7 trillion mark by 2028. Where would you spend your IT budget in 2025 and why? Share it with us in the comments section below.