Global spending on information technology (covering hardware, software, and IT services) is projected to grow by 14% in 2025, marking the fastest expansion since 1996, according to the latest IDC Worldwide Black Book report. The surge in 1996 was fueled by the launch of Windows 95, widespread PC adoption, and rapid internet growth. Nearly three decades later, a massive wave of AI infrastructure investments is driving a new supercycle in technology spending.
Total global IT expenditure is expected to reach $4.25 trillion (approximately RMB 30 trillion) in 2025. When including telecommunications and business services, worldwide ICT spending will approach $7 trillion (around RMB 50 trillion).
The report highlights that IT spending forecasts for 2025 have been revised upward for seven consecutive months, primarily due to service providers' AI infrastructure investments consistently exceeding expectations. Enterprise software spending remains robust, with digital transformation and cloud migration progressing steadily. Software expenditure is projected to rise by 14% in 2025, while AI deployment is also spurring continued investments in security, optimization, and analytics.
Stephen Minton, Group Vice President at IDC, noted that AI is the central theme for IT market performance in 2025, though most AI investments currently remain concentrated in service providers' infrastructure build-outs. These investments are supported by stable corporate spending on core IT products and services. Additionally, AI investments are fostering economic growth and stability, encouraging sustained corporate spending on cloud services and enterprise software. Overall, the market is experiencing a technology-driven "virtuous cycle" in the macroeconomy.
Global IT spending surged by 16% in Q1 2025, partly due to anticipated Q2 tariffs prompting early PC shipments, contributing to quarterly growth—the highest in nearly 29 years. Corporate IT spending grew by 11% in Q1 and 10% in Q2. Meanwhile, service providers' spending on data center infrastructure (including servers, storage, and networking equipment) is expected to jump by 86% in 2025, reaching nearly $500 billion (approximately RMB 3.5 trillion).
Despite discussions about the sustainability of this growth cycle, no signs of slowdown have emerged. Surveys indicate most enterprises plan to increase IT budgets in 2026, even amid lingering global economic uncertainties. IDC predicts global IT spending will grow by 10% in 2026—lower than 2025 but still among the strongest years since the 1990s.
Minton also cautioned that 2026 may face challenges, including potential memory component shortages that could drive up PC costs. Despite tariff pressures and risks of global economic weakness, technology demand has shown resilience this year. IDC’s baseline forecast assumes economic stability, with ongoing AI investments providing support. Even in a mild recession, most IT spending is expected to continue. The likelihood of a repeat of the 2001 IT market collapse—a "perfect storm"—remains low.
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