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Rackspace Receives SBTi Approval for Net-Zero Targets

July 31, 2025

Framework sets new standard for helping customers meet their sustainability goals and Scope 3 reporting requirements.

SAN ANTONIO, July 31, 2025 – Rackspace Technology® (NASDAQ: RXT), a leading end-to-end hybrid cloud and AI solutions company, announced today that the Science Based Targets Initiative (SBTi) has approved its near-term, long-term, and net-zero emissions reduction goals. Rackspace’s targets align with the SBTi’s objective of limiting global warming to 1.5°C, include a commitment to cut emissions by 50% by 2032 and 90% by 2045 to meet net-zero carbon emissions goals. These ambitious targets, benchmarked to 2023, position Rackspace ahead of many peers in the cloud services space, offering customers a rigorous framework which is independently validated and supported by clear, measurable metrics, that align with their sustainability objectives.

Global energy consumption from data centres is projected to more than double by 2030, with AI as a leading driver of demand. As a result, companies are facing increasing regulatory pressure, such as the EU’s Corporate Sustainability Reporting Directive, to disclose and reduce their carbon emissions tied to energy use across their supply chain.  Rackspace currently powers approximately 80% of its global data centres with renewable energy and is advancing its efforts to reach 100% through strategic partnerships.

“SBTi’s validation of our net-zero targets is a significant milestone in Rackspace’s decarbonization journey,” said Srini Koushik, President AI, Technology, and Sustainability at Rackspace Technology. “Cloud services and digital infrastructure are among the most significant factors in organizations’ supply chain and Scope 3 emissions. By setting and making progress against aggressive sustainability goals, we are not only minimizing our own environmental impact but also helping our customers to achieve theirs, without sacrificing performance.”

“We recognize that building efficiency into our operations and across our global footprint will have a positive impact on our customers’ ability to meet their sustainability goals,” added Ben Blanquera, VP of Technology and Sustainability at Rackspace Technology. “By committing to these aggressive SBTi-validated targets, we are establishing a framework for meaningful emissions reductions and underscoring our commitment to act as an environmentally responsible partner for our stakeholders, partners and clients.”

Rackspace customers are achieving reductions in their cloud carbon footprint through the company’s Workload Aware Modernization program, which identifies wasted cloud resources while improving environmental sustainability. The comprehensive assessments enable organizations to eliminate underutilized infrastructure, reduce idle usage, and transition to more sustainable cloud architectures. By adopting serverless computing, cloud-native solutions, and automated resource management, customers can dramatically cut both costs and environmental impact while modernizing their technology stack.

About Rackspace Technology
Rackspace Technology is a leading end-to-end hybrid cloud and AI solutions company. We can design, build, and operate our customers’ cloud environments across all major technology platforms, irrespective of technology stack or deployment model. We partner with our customers at every stage of their cloud journey, enabling them to modernize applications, build new products, and adopt innovative technologies.

Media Contact

Cheryl Amerine, Head of Media Relations, Rackspace Technology – publicrelations@rackspace.com

About Rackspace Technology

Rackspace Technology® (NASDAQ: RXT) is the operator of the full enterprise AI stack from governed private cloud to AI inference and agents in production. With an Outcomes-as-a-Service model built on secure infrastructure, data foundations, and forward-deployed engineering, Rackspace delivers business results for regulated and mission-critical industries where governance, sovereignty, and uptime are non-negotiable. Learn more at www.rackspace.com.

Forward-Looking Statements

This press release contains “forward-looking statements” within the meaning of the safe harbor provisions of the Private Securities Litigation Reform Act of 1995. Forward-looking statements generally relate to future events and can be identified by terminology such as “believe,” “may,” “will,” “potentially,” “estimate,” “continues,” “anticipate,” “intend,” “could,” “would,” “project,” “plan,” “expect,” “is putting,” “designed to,” or the negative of such terms or other similar expressions, although not all forward-looking statements contain these words.

 These statements include, but are not limited to, Rackspace Technology’s relationship with NVIDIA and the NVIDIA Cloud Partner Program, its Enterprise AI Cloud strategy, the anticipated capabilities, benefits and timing of its Institutional Sovereign Pod architecture, Rackspace’s outlook on the AI industry and its ability to deliver, operate, and scale AI infrastructure and solutions for regulated, institutional and sovereign enterprises. Forward-looking statements are based on current expectations and assumptions and are subject to risks and uncertainties that could cause actual results to differ materially, including, without limitation: Rackspace's ability to realize the anticipated benefits of its relationship with NVIDIA and the NCP program; the availability, cost, and timing of deployment of NVIDIA and other third-party technology; Rackspace's ability to develop, market, and scale the Institutional Sovereign Pod and related offerings on the anticipated timeline or at all; market acceptance of and demand for sovereign and governed AI infrastructure solutions; competition in the AI infrastructure and cloud services markets; capital expenditure requirements associated with AI infrastructure buildout; availability of financing for the AI infrastructure buildout on terms acceptable to Rackspace; Rackspace’s reliance on a limited number of technology partners, including NVIDIA; cybersecurity, data privacy, and regulatory compliance risks associated with serving regulated and sovereign customers; general economic and industry conditions; and other risks and uncertainties described in Rackspace's filings with the Securities and Exchange Commission, including its most recent Annual Report on Form 10-K and Quarterly Reports on Form 10-Q. Rackspace undertakes no obligation to update or revise any forward-looking statements, whether as a result of new information, future events, or otherwise, except as required by law.