Gartner projects that global IT spending will reach $5.43 trillion by the end of 2025, representing a 7.9% increase from 2024. This growth is largely driven by increased investment in generative AI and the necessary infrastructure.

Data center systems are expected to grow by 42.4% in 2025 as AI vendors and hyperscalers expand their AI-based products and services. This significant growth contrasts with more modest increases of 10.5% in software and 5.4% in devices.

Gartner indicates that 2024 was not a strong year for AI projects, with many being canceled or failing. As businesses navigate this landscape, they are expected to seek more targeted returns on their AI investments, particularly as they move through the current 'trough of disillusionment' with generative AI.