Gartner Forecasts US$202bn Spend on AI Servers in 2025

Global IT spending will reach US$5.61tn in 2025, with data centre systems experiencing growth of 23.2% to reach US$405.5bn, according to research and advisory firm Gartner.
Such a dramatic spending increase is reflective of broader changes across the technology sector, where enterprises face pressure to upgrade hardware to support AI workloads whilst managing increases in recurring costs.
John Lovelock, Chief Forecaster at Gartner, says increases in Chief Information Officer (CIO) budgets will be partially consumed by price rises in existing technology contracts.
"While budgets for CIOs are increasing, a significant portion will merely offset price increases within their recurrent spending," he says.
"This means that, in 2025, nominal spending versus real IT spending will be skewed, with price hikes meaning absorbing some or all of budget growth."
Hyperscale operators driving AI investments
Companies operating large-scale hyperscale data centre infrastructure will account for more than 70% of spending on AI-optimised servers in 2025, reaching US$202bn - double the amount spent on traditional server hardware.
These AI-optimised servers contain specialised processors and high-bandwidth memory designed specifically for training and running AI models.
"By 2028, hyperscalers will operate US$1tn worth of AI-optimised servers, but not within their traditional business model or Infrastructure-as-a-Service market," John adds. "Hyperscalers are pivoting to be part of the oligopoly AI model market."
Gartner’s projections are based on analysis of sales data from more than 1,000 technology vendors across the IT products and services spectrum.
- Data centre systems are expected to see the sharpest rise, surging by 23.2% to US$405.5bn in 2025, while software spending is set to grow by 14.2% to US$1.25tn
The firm indicates that software spending is projected to increase by 14.2% to US$1.25tn in 2025, while spending on devices including personal computers and tablets will rise 10.4% to US$810.2bn.
However, John notes that AI capabilities are not yet driving widespread device upgrades. "The new AI-ready PCs do not yet have 'must-have' applications that use the hardware," he says.
This reflects broader uncertainty around the immediate impact of Gen AI, AI systems capable of creating content from text prompts.
While consumers and enterprises will purchase AI-enabled devices such as personal computers, tablets, and mobile phones, Gartner's research indicates these purchases will not be driven primarily by AI functionality due to limited practical applications.
Price pressures set to shape technology investments
CIOs are facing increasing pressure to balance operational demands with inflationary pressures across technology services, Gartner says.
The forecast indicates that device spending growth will be driven by necessary upgrades rather than discretionary improvements, as enterprises manage both maintenance requirements and rising costs.
Gen AI is sliding toward the trough of disillusionment, which reflects CIOs' declining expectations for Gen AI, but not their spending on this technology.
This shift in spending patterns comes as technology leaders evaluate the practical applications of emerging technologies against immediate operational needs.
Within the data centre sector alone, debates are continuing over how AI is putting energy and power pressures on facilities. Operators are now having to find new and innovative ways to be sustainable and power data centres without compromising the grid.
The role of hyperscale operators in the market continues to evolve, with these firms moving beyond their traditional infrastructure provision models towards specialised AI computing services.
"Gen AI is sliding toward the trough of disillusionment," John says, "which reflects CIOs' declining expectations for Gen AI, but not their spending on this technology."
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