Worldwide IT spending will surge 14% in 2025 to $4.25 trillion, its strongest annual performance in nearly three decades as massive artificial intelligence (AI) infrastructure investments drive a worldwide tech super cycle, according to market researcher IDC.
Total information and communications technology (ICT) spending, which includes IT spending plus telecommunications and business services, will approach $7 trillion this year, underscoring the transformative impact of AI on the global economy.
The forecast represents the seventh consecutive monthly increase in IDC’s 2025 projections, reflecting continued over-performance and aggressive investments by service providers in AI infrastructure, along with strong enterprise software spending.
According to IDC’s Worldwide Black Book, which tracks technology spending across more than 100 countries, the IT market demonstrated remarkable momentum in early 2025, growing 16% in the first quarter — the fastest quarterly expansion since 1996. While partially attributed to accelerated PC shipments ahead of anticipated second-quarter tariffs, the growth reflects broader trends reshaping the technology landscape.
“AI is the headline of IT market performance in 2025, but most of the actual AI investment this year is concentrated in service provider infrastructure,” said Stephen Minton, group vice president at IDC. He explained that enterprise spending on core IT products and services generates strong revenue streams for service providers, which then reinvest heavily in AI deployment, creating what he termed “a virtuous cycle of tech-driven macroeconomic growth.”
Service provider spending on datacenter infrastructure — including servers, storage, and network equipment — is projected to surge 86% in 2025, approaching $500 billion. Meanwhile, enterprise IT spending remains healthy, with 11% growth in the first quarter and 10% in the second quarter.
Software spending has emerged as another bright spot: It is now expected to increase 14% this year as organizations continue digital transformation and cloud migration initiatives. AI deployments are supplementing investments in security, optimization, and analytics solutions.
Looking ahead, IDC forecasts 10% IT spending growth in 2026, which is slower than 2025 but still representing one of the strongest years since the 1990s. However, challenges loom, including an expected memory component shortage that could drive up PC prices.
Despite headwinds, Minton said the likelihood of a severe downturn comparable to the 2001 IT market crash “remains low.”
