Global information technology spending is on pace to hit historic levels in 2025, with market research firm IDC projecting a roughly 14 percent increase that would push total IT expenditures to around $4.25 trillion and overall ICT (information and communications technology) outlays close to $7 trillion, driven primarily by heavy investment in AI infrastructure, cloud services, and enterprise transformation. Independent forecasts from other outlets also show sustained strong IT spending growth worldwide and predictions that overall technology budgets will continue expanding into 2026, underlining the significant economic role of digital transformation.
Sources: TechStrong, InfoTechLead
Key Takeaways
– Worldwide IT spending is forecast to rise sharply in 2025, marking the fastest growth since the mid-1990s technology boom.
– Much of the spending surge is attributed to substantial investment in AI infrastructure, cloud computing, and enterprise digital transformation projects.
– Independent analyses suggest the growth trend is likely to continue into 2026, with total global IT budgets potentially exceeding previous records.
In-Depth
Global IT spending is experiencing a notable upswing that industry analysts are calling one of the most significant since the early internet era, with projections showing a major acceleration in corporate and government technology budgets this year and beyond. According to the most recent forecasts, total global spending on information technology in 2025 is expected to post a double-digit percentage increase — roughly 14 percent — representing the fastest growth rate since the mid-1990s, a period driven by the mass adoption of personal computing and early internet technologies. This surge is largely propelled by a wave of investments in artificial intelligence infrastructure, cloud services, and broader digital transformation initiatives, as organizations across sectors prioritize modernization and competitive advantage in an increasingly tech-dependent global economy.
Market research firm IDC’s latest outlook anticipates that worldwide IT expenditures — covering hardware, software, IT services, and related technology products — will reach approximately $4.25 trillion in 2025, with total ICT spending, which includes telecom and business services, approaching $7 trillion. This trend reflects sustained demand for advanced computing power, data center expansion, enterprise software upgrades, and networking capacity, much of it tied to the integration of generative AI capabilities and supporting infrastructure. The growth trajectory has been reinforced by strong first-quarter performance and ongoing enterprise commitments to digital initiatives, indicating that technology spending is no longer viewed as discretionary but as foundational to operational resilience and strategic growth.
Independent industry analysis mirrors IDC’s findings, reinforcing the narrative that 2025 could be a record year for technology budgets globally. Additional reporting notes that this rate of expansion surpasses typical annual increases seen in recent years and suggests that technology investment is being prioritized even amid broader economic uncertainties. Beyond immediate figures, forecasts also point toward continued robust spending in 2026, with some predictions suggesting that overall technology budgets could climb even higher, potentially exceeding $6 trillion as organizations further embrace AI-driven tools and services, cloud-native architectures, and digital transformation strategies.
What sets this spending cycle apart is not just its scale but its drivers. The current environment is deeply influenced by rapid AI adoption, which is demanding enhanced computing infrastructure, specialized software platforms, and security and analytics tools capable of supporting data-intensive workloads. Cloud migration remains a central piece of the puzzle, with enterprises accelerating moves to hybrid and multi-cloud environments to gain flexibility and scalability, while also investing in cybersecurity and compliance solutions to protect increasingly complex digital estates.
Despite the optimism around technological innovation and spending growth, some analysts urge caution, noting that price inflation and budget reallocations could shape how much of the nominal spending translates into real investment in new capabilities versus covering rising costs for existing services. Nonetheless, the overall narrative suggests that technology — and particularly investments tied to AI and cloud — is increasingly viewed as a core engine of economic and operational transformation, with spending trends reflecting that priority. As companies continue to navigate competitive pressures, regulatory complexities, and evolving customer expectations, the path of IT investment appears set to remain a bellwether of broader economic and industry dynamics well into the future.