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In late 2025, global spending on core IT—hardware, software, and services—has surged by 14%, marking the fastest annual growth rate in nearly 30 years since the 1996 dot-com boom, according to IDC's Worldwide Black Book.
Key Drivers of the 2025 Global IT Spending Surge
IDC points to a "virtuous cycle" where AI fuels massive infrastructure buildouts:
- Hyperscaler Investments Lead the Way → Cloud giants like AWS, Microsoft Azure, and Google are driving the surge, with data center spending on servers, storage, and networking projected to jump 86%—approaching $500 billion.
- Enterprise Demand Remains Strong → Core enterprise IT grows at 10-11% in early quarters, supporting cloud migrations, software upgrades, and digital transformation.
- Device Refresh Cycles Accelerate → Q1 2025 recorded the fastest quarterly growth in 29 years, boosted by AI-capable PCs and pre-tariff stockpiling.
IDC's Stephen Minton explains: "AI is the headline, but most actual investment this year is in service provider infrastructure," creating stability that sustains broader enterprise spending.
Key Drivers of the 2025 Global IT Spending Surge
IDC points to a "virtuous cycle" where AI fuels massive infrastructure buildouts:
- Hyperscaler Investments Lead the Way — Cloud giants like AWS, Microsoft Azure, and Google drive the surge, with data center spending on servers, storage, and networking projected to jump 86%—approaching $500 billion.
- Enterprise Demand Remains Strong — Core enterprise IT grows at 10-11% in early quarters, supporting cloud migrations, software upgrades, and digital transformation.
- Device Refresh Cycles Accelerate — Q1 2025 recorded the fastest quarterly growth in 29 years, boosted by AI-capable PCs and pre-tariff stockpiling.
IDC's Stephen Minton explains: "AI is the headline, but most actual investment this year is in service provider infrastructure," creating stability that sustains broader enterprise spending.
Breakdown by Region: US Dominates, Emerging Markets Accelerate
Regional trends show stark contrasts, with AI infrastructure heavily concentrated in mature markets:
- United States → Leads globally, capturing ~76% of AI infrastructure spending and driving ~41-44% of total IT spend. Resilient economy and hyperscaler dominance fuel double-digit growth.
- Europe/UK → Moderate growth at ~5%, reaching ~$1.28 trillion. Focus on public sector digitalization, cybersecurity, and green IT initiatives amid regulatory pressures.
- Asia-Pacific (incl. China) → Fastest-growing regions like China (CAGR ~41% for AI infra) and Southeast Asia push overall spend to ~$1.2 trillion. E-commerce expansion and government AI initiatives in India/China accelerate adoption.
Emerging markets (Latin America, China) show higher CAGRs due to rapid digital transformation.
Specific Category Deep-Dive: Hardware Leads AI Surge
Growth varies significantly by category (approximate 2025 figures from IDC/Gartner consensus):
Hyperscalers account for 70%+ of data center investments.
Impact on SMBs: Affordable Leverage in a High-Growth Era
Small and medium businesses (SMBs) benefit indirectly from the boom, with global SMB IT spending projected at ~$1.7-1.9 trillion in 2025 (CAGR ~6-7%). While hyperscalers dominate big-ticket AI infra, SMBs focus on cloud/SaaS for cost-effective scaling—often 60-68% productivity gains via automation.
Amid shortages inflating new hardware prices, refurbished options provide immediate, affordable access to AI-ready servers/storage (50-80% savings). This allows SMBs to participate without massive CapEx.
Risk Factors for 2026: Shortages and Tariffs Loom
Despite strength, headwinds emerge:
- Component Shortages → Memory (RAM/SSD) constraints could drive further price hikes, slowing PC/device growth.
- Tariffs/Geopolitics → Ongoing US-China tensions and trade disruptions risk 5-9% downside scenarios, delaying investments.
- Economic Uncertainty → Potential slowdowns in consumer spending could ripple to enterprise caution.
IDC still forecasts robust 10% growth in 2026, but resilience depends on AI demand stability.
This record global IT spending 2025 boom presents opportunities for efficient scaling. With risks like shortages persisting, smart sourcing is essential.
What to Expect in 2026: Continued Strength Amid Challenges
IDC predicts 10% growth for 2026—still among the strongest in decades—despite potential headwinds like component shortages pushing prices higher. Resilient demand amid economic and tariff uncertainties signals ongoing momentum.
This record global IT spending 2025 boom presents opportunities for businesses to scale efficiently. With shortages persisting, smart sourcing is key.
At Servnet, we deliver immediate-availability refurbished and new hardware—often with 50-80% savings on AI-ready solutions.
Capitalize on the IT spending growth 2025 surge today. Contact Servnet at sales@servnetuk.com or call 0800 987 4111 for a no-obligation quote. Secure your budget. Own the comeback.
