Gartner forecast worldwide IT spending would reach $5.6 trillion in 2025, a 9.8 per cent year-on-year increase.

The research company stated generative AI (genAI) hardware upgrades across data centres, devices and software would lead to double-digit spending growth.

Leading the way, spending on data centre systems is expected to grow 23.2 per cent to $405 billion.

Spending on AI-optimised servers is tipped to be easily double the amount expended on traditional servers in 2025, at $202 billion. 

Gartner analyst John-David Lovelock noted IT services and hyperscale companies would account for more than 70 per cent of the projected spend.

He explained hyperscalers would operate $1 trillion-worth of AI optimised servers by 2028, “but not within their traditional business model or IaaS market”, instead shifting “to be part of the oligopoly AI model market”.

Software spending is projected to increase 14.2 per cent to $1.2 trillion and devices 10.4 per cent to $810 billion.

The company’s projections are based on analysis of sales data from more than 1,000 technology vendors across a range of IT products and services.