Rackspace Receives SBTi Approval for Net-Zero Targets, Reinforcing Commitment to Sustainable Operations and Innovation

Rhea-AI Summary

Rackspace Technology (NASDAQ: RXT) has received approval from the Science Based Targets Initiative (SBTi) for its emissions reduction goals. The company has committed to ambitious targets including cutting emissions by 50% by 2032 and 90% by 2045 to achieve net-zero carbon emissions.

Currently powering 80% of its global data centers with renewable energy, Rackspace is working towards reaching 100% through strategic partnerships. The company's Workload Aware Modernization program helps customers reduce their cloud carbon footprint by identifying wasted resources and improving infrastructure efficiency.

This initiative comes as global data center energy consumption is expected to more than double by 2030, with AI being a major driver of demand.

Positive

• SBTi approval validates company's commitment to emissions reduction targets
• 80% of global data centers already powered by renewable energy
• Workload Aware Modernization program helps customers reduce cloud carbon footprint
• Positions company ahead of peers in cloud services sustainability efforts

Negative

• Significant investment and operational changes required to meet ambitious 2032 and 2045 targets
• Growing AI-driven energy consumption could challenge emission reduction goals

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

SAN ANTONIO, July 31, 2025 (GLOBE NEWSWIRE) -- 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

FAQ

What are Rackspace Technology's (RXT) new emission reduction targets?

Rackspace has committed to reducing emissions by 50% by 2032 and 90% by 2045 to achieve net-zero carbon emissions, with targets benchmarked to 2023.

How much of Rackspace's data centers are powered by renewable energy?

Currently, 80% of Rackspace's global data centers are powered by renewable energy, with plans to reach 100% through strategic partnerships.

How does Rackspace help customers reduce their carbon footprint?

Through its Workload Aware Modernization program, Rackspace helps customers identify wasted cloud resources, reduce idle usage, and transition to more sustainable cloud architectures.

What is driving the need for Rackspace's sustainability initiatives?

Global data center energy consumption is projected to more than double by 2030, driven by AI, while increasing regulatory pressure requires companies to disclose and reduce their carbon emissions.

What is the significance of SBTi approval for Rackspace?

SBTi approval validates that Rackspace's emissions reduction targets align with the objective of limiting global warming to 1.5°C and provides an independently validated framework for sustainability goals.