GROWTH IN IT EQUIPMENT AND SOFTWARE INVESTMENT
The Equipment Leasing & Finance Foundation projects a 4.7% year-over-year increase in equipment and software investment in 2025, with growth expected to accelerate in the latter half of the year. This increase is fueled by expanding IT infrastructure needs and a rising demand for AI-powered tools that enhance efficiency and cybersecurity.
THE RISE OF EQUIPMENT-AS-ASERVICE (EAAS) MODELS
Subscription-based and usage-driven financing models, commonly known as equipment-as-a-service (EaaS), are gaining traction in the IT sector. These models allow businesses to scale IT infrastructure without large upfront costs, driving increased interest in flexible financing options. As companies seek more predictable IT expenses, ELFA predicts that EaaS financing will play a central role in 2025.
AI AND DATA ANALYTICS
AI is driving significant changes in the IT equipment and software landscape, affecting the assets that equipment finance companies lend or lease against. AI-powered servers and data centers are becoming essential for handling vast volumes of machine learning and automation processes, increasing the demand for financing advanced computing infrastructure.
EXPANSION OF DATA CENTERS AND CYBERSECURITY SOLUTIONS
Investment in data center infrastructure is surging, driven by increasing cloud adoption and digital transformation. Research from McKinsey suggests that demand for AI-ready data center capacity will rise at an average rate of 33% a year between 2023 and 2030 in a midrange scenario. This means that around 70% of total demand for data center capacity will be for data centers equipped to host advanced-AI workloads by 2030. This trend will lead to higher financing demand for servers, networking equipment and storage solutions.
Similarly, AI-powered cybersecurity tools are becoming critical in combating sophisticated cyber threats, which Capgemini predicts will push businesses to invest in advanced IT security solutions.
AI GOVERNANCE AND IT SERVICE MODEL EVOLUTION
With AI adoption increasing across industries, Gartner expects businesses to prioritize AI governance platforms in 2025 to ensure compliance with legal, ethical and operational standards. Additionally, IT service delivery models are shifting toward AI-driven automation, changing the types of IT hardware and software businesses require. •
