Rackspace Technology has published its 2025 Sustainability Report, outlining progress on reducing carbon emissions and enhancing operational efficiency through partnerships and innovation. The report details the company’s alignment with United Nations Sustainable Development Goals and efforts to lead sustainability practices in the cloud services sector.
“At Rackspace Technology, we embed sustainability into every layer of our business – from how we build and deliver technology to how we empower customers to meet their own climate goals,” said Gajen Kandiah, Chief Executive Officer, Rackspace Technology. “We are committed to improving our outcomes with science-based targets, enhanced emissions tracking and innovative infrastructure upgrades.”
The Science Based Targets initiative (SBTi) validated Rackspace’s near-term and long-term net-zero emission reduction goals in 2025. These targets include a commitment to cut emissions by 50% by 2032 and 90% by 2045, consistent with the SBTi’s goal of limiting global warming to 1.5°C.
Key results highlighted in the report include an 11% total emissions reduction from 2023 to 2024, including a 20% decrease in Scope 1 & 2 emissions and a 9% reduction in Scope 3 emissions. Relocating its headquarters in San Antonio led to an 80% drop in facility emissions, as space was reduced from 800,000 square feet to 80,000 square feet, resulting in savings of over 6,000 tons of CO₂ equivalent.
Currently, renewable energy powers about 80% of Rackspace’s global data centers. The company is working toward reaching full renewable energy use through initiatives such as RE100 and other energy partnerships. Its Dallas/Fort Worth data center underwent upgrades with automation and building management systems for improved energy performance.
Rackspace has also completed third-party audits for its Scope 1, 2, and 3 emissions baseline. The company strengthened environmental data collection with verified carbon accounting and a double materiality assessment.
On responsible AI leadership, Rackspace leaders contributed to SustainableIT.org’s “IT Toolkit for Responsible and Sustainable AI.” The organization formalized its IT asset disposal policy supporting recycling and waste reduction. There was also a reported reduction of IT services emissions by nearly one-third.
Additional actions included donating more than 1,200 devices globally to increase digital access in underserved communities. Since 2023, employees have earned over 13,000 technical certifications across various platforms including AWS, Microsoft Azure, Google Cloud, Cisco, Oracle, Red Hat, SAP, VMware and others. According to the report, “95% of employees AI-ready certified: the organization surpassed its goals, preparing the workforce for responsible AI deployment.”
Employees receive volunteer time off annually; during recent periods they logged a total of around 23,000 hours volunteering locally and raised $160,000 for local causes. Through the Rackspace Foundation over $8 million has been raised for education programs benefitting more than ten thousand students.
The full sustainability report is available at https://www.rackspace.com/resources/2025-sustainability-report.
