Rackspace Achieves SBTi Approval for Net-Zero Targets

Rackspace Technology has received approval from the Science Based Targets Initiative (SBTi) for its emissions reduction goals. The company aims to power 100% of its data centers with renewable energy and reduce its carbon footprint by 50% by 2032 and 90% by 2045. Rackspace assists its customers in reducing their carbon footprint through its Workload Aware Modernization program, which identifies wasted cloud resources and improves infrastructure efficiency. The SBTi approval solidifies Rackspace's commitment to sustainable operations and positions it ahead of peers in the cloud services industry.

San Antonio, July 2, 2025 — Rackspace Technology® (NASDAQ: RXT), a leading end-to-end hybrid cloud and AI solutions company, has received approval from the Science Based Targets Initiative (SBTi) for its emissions reduction goals. The approval recognizes Rackspace's commitment to sustainability, positioning it ahead of many peers in the cloud services industry.

Rackspace's targets, aligned with 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, benchmarked to 2023. These ambitious goals position Rackspace ahead of many peers, offering customers a rigorous framework for sustainability that is independently validated and supported by clear, measurable metrics [1].

Global energy consumption from data centers 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 to disclose and reduce their carbon emissions tied to energy use across their supply chain. Rackspace currently powers approximately 80% of its global data centers with renewable energy and is advancing its efforts to reach 100% through strategic partnerships [1].

The SBTi approval is a significant milestone in Rackspace's decarbonization journey. "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" [1].

Rackspace customers are achieving reductions in their cloud carbon footprint through the company's Workload Aware Modernization program. This program 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 [1].

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 [1].

References:
[1] https://finance.yahoo.com/news/rackspace-receives-sbti-approval-net-200500085.html
[2] https://www.globenewswire.com/news-release/2025/07/31/3125389/0/en/Rackspace-Receives-SBTi-Approval-for-Net-Zero-Targets-Reinforcing-Commitment-to-Sustainable-Operations-and-Innovation.html
[3] https://www.rackspace.com/newsroom/rackspace-receives-sbti-approval-net-zero-targets