Rackspace Technology Releases 2025 Sustainability Report

Rhea-AI Summary

Rackspace Technology (NYSE:RXT) released its 2025 Sustainability Report highlighting validated near-term and long-term GHG targets by SBTi, a 10% total emissions reduction from 2023 to 2024, and strengthened carbon accounting with third-party audits. Key outcomes include an 80% facility emissions cut from headquarters relocation, 20% drop in Scope 1 & 2, a 9% Scope 3 reduction, 28.4% of data center electricity matched via PPAs/RECs in 2024, and a long-term net-zero goal with residual neutralization by 2045. The report also highlights efficiency gains, circular IT policy, donations, workforce certifications, and $8M+ raised for education.

Positive

• SBTi-validated near-term and long-term GHG targets
• Total emissions down 10% year-over-year (2023→2024)
• Scope 1 & 2 emissions declined 20%
• Headquarters relocation cut facility emissions by 80% saving 6,007 tons CO₂e
• DFW data center upgrades reduced consumption by ~1,700 MWh

Negative

• 28.4% of data center electricity matched by PPAs/RECs in 2024
• Net-zero residual emissions neutralization target set for 2045

Latest Report Showcases Bold Progress Toward Net-Zero Targets and Global Impact

SAN ANTONIO, Oct. 21, 2025 (GLOBE NEWSWIRE) -- 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.

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.

Disclaimer

This press release contains forward-looking statements that reflect Rackspace Technology’s current expectations and assumptions, which are subject to risks and uncertainties. Actual results may differ materially due to factors beyond our control, as detailed in our SEC filings. Rackspace undertakes no obligation to update these statements based on new information or future developments.

Media Contact:

Cheryl Amerine, publicrelations@rackspace.com

A photo accompanying this announcement is available at: https://www.globenewswire.com/NewsRoom/AttachmentNg/21b15de8-8941-4225-846e-95c43147b60a

FAQ

What did Rackspace (RXT) report in its 2025 Sustainability Report on emissions reductions?

Rackspace reported a 10% total emissions reduction from 2023 to 2024, including 20% lower Scope 1 & 2 and 9% lower Scope 3.

Has Rackspace (RXT) received external validation for its climate targets in 2025?

Yes. The Science Based Targets initiative (SBTi) validated Rackspace's near-term and long-term GHG targets in 2025.

How much of Rackspace's data center electricity was matched with renewables in 2024?

Approximately 28.4% of electricity across Rackspace-operated data centers was matched on a market basis via PPAs and/or RECs in 2024.

What operational changes drove emission savings for Rackspace (RXT) in 2024?

Key actions included headquarters downsizing that cut facility emissions by 80% and DFW data center efficiency upgrades saving ~1,700 MWh.

What is Rackspace's net-zero timeline and scope disclosed in the 2025 report?

Rackspace's long-term net-zero target covers Scopes 1, 2, and 3 with residual emissions neutralization by 2045.

What workforce and social metrics did Rackspace (RXT) disclose in the 2025 Sustainability Report?

Highlights include >13,000 technical certifications since 2023, 95% employees AI-ready certified, >1,200 devices donated, and $8M+ raised for education.