Rackspace Technology Releases 2025 Sustainability Report

Rackspace Technology®, a leading end-to-end hybrid cloud and AI solutions company, today announced the release of its 2025 Sustainability Report showcasing progress toward net-zero carbon emissions, enhanced operational efficiency, and global impact through strategic partnerships and innovation. The report reflects Rackspace’s commitment to aligning with the United Nations Sustainable Development Goals (SDGs) and leading the cloud services industry in sustainability practices. In 2025, the Science Based Targets initiative (SBTi) validated our Greenhouse Gas (GHG) reduction targets demonstrating our measurable environmental progress aligned with SDG 13.

“At Rackspace Technology we are making sustainability a measurable part of how we run the company,” said Gajen Kandiah, Chief Executive Officer, Rackspace Technology. “In 2025 our near-term and long-term targets were validated by the SBTi, we reduced total emissions by 10 percent from our 2023 baseline, and we improved efficiency at priority sites. The same discipline now shows up in how we help customers lower costs and carbon. We will continue to report with clear data, independent reviews, and strong governance.”

Rackspace’s sustainability efforts emphasize renewable energy, conservation and advocacy. Approximately 28.4 percent of electricity used across Rackspace operated data centers in 2024 was matched on a market basis through Power Purchase Agreements (PPAs) and/or Renewable Energy Certificates (RECs). We plan to increase long-term contracting as markets allow. In 2025, SBTi validated our near-term targets for Scope 1 and Scope 2 emissions, and for Scope 3 purchased goods and services, using a 2023 baseline. Our long-term net zero target covers Scopes 1, 2, and 3 with neutralization of residual emissions by 2045.

Here are more examples of the organization’s outcomes:

Progress

• 10% total emissions reduction in one year: achieved from 2023 to 2024, including a 20% drop in Scope 1 & 2 and 9 percent reduction in Scope 3 emissions
• Headquarters relocation in San Antonio, Texas, cut facility emissions by 80%: downsized from 800,000 ft² to 80,000 ft², saving 6,007 tons of CO₂e from 2023 to 2024
• 80% of Rackspace global data centers are powered by renewable energy: and we are advancing toward 100% through RE100 and strategic energy partnerships
• DFW data center efficiency upgrades: Enhanced automation and building management systems at our Dallas/Fort Worth data center drove improved energy performance and monitoring, reducing power consumption by approximately 1,700 MWh between 2023 and 2024
• Third-party audited Scope 1, 2, and 3 emissions baseline: Rackspace strengthened environmental data capabilities with verified carbon accounting and double materiality assessment

Purpose

• Leadership in responsible AI: our leaders co-authored SustainableIT.org’s “IT Toolkit for Responsible and Sustainable AI” to guide scalable implementation
• Circular IT lifecycle policy: Rackspace formalized its IT asset disposal policy to promote recycling, upcycling and waste reduction
• 31% reduction in IT services emissions: demonstrating the organization’s commitment to efficient, low-impact cloud operations
• 1,200+ devices donated globally: expanding digital access and promoting responsible consumption in underserved communities

People

• 13,000+ technical certifications earned since 2023: empowering employees with cloud and sustainability skills across AWS, Microsoft® Azure®, Google Cloud, Cisco®, Oracle®, Red Hat®, SAP®, VMware® and others.
• 95% of employees AI-ready certified: the organization surpassed its goals, preparing the workforce for responsible AI deployment
• Every employee receives 40 hours of volunteer time off each year: delivering 23,000 hours logged, and $160,000 raised, for local causes in recent reporting periods
• $8M+ raised for education via Rackspace Foundation: supporting 10,000+ students with STEM and holistic programs

For more information about the company’s commitment to sustainability, read the full 2025 Sustainability Report available at 2025 Sustainability Report | Rackspace Technology.