Rackspace cuts emissions by 10% & targets net zero by 2045

Rackspace Technology has published its 2025 Sustainability Report detailing progress towards net-zero carbon emissions.

The latest report from Rackspace Technology outlines significant steps taken to reduce the company's environmental footprint and advance operational efficiency across its global cloud services business. The report presents a 10 per cent reduction in total greenhouse gas emissions in one year and validation of its near- and long-term climate goals from the Science Based Targets initiative (SBTi).

Emissions reductions

Between 2023 and 2024, Rackspace achieved a 20 per cent decrease in Scope 1 and Scope 2 emissions, which cover direct and indirect emissions from owned or controlled sources, while Scope 3 emissions-encompassing indirect emissions from its value chain-fell by 9 per cent. The company's emissions accounting has been verified through third-party audits and a double materiality assessment, bolstering the credibility of its environmental data.

According to Rackspace, the company's head office relocation in San Antonio, Texas, was among the major contributors to these figures. Downsizing its facility from 800,000 square feet to 80,000 square feet led to an 80 per cent reduction in facility emissions, saving an estimated 6,007 tonnes of CO2-equivalent.

Currently, 80 per cent of Rackspace's global data centres are powered by renewable energy, with the company indicating a commitment to progressing toward 100 per cent renewable power via ongoing participation in the RE100 initiative and long-term energy contracts where local markets permit. In 2024, 28.4 per cent of the electricity used across its data centres was matched on a market basis through Power Purchase Agreements (PPAs) and/or Renewable Energy Certificates (RECs).

SBTi validation and climate targets

In 2025, the SBTi validated both Rackspace's near-term and long-term climate action targets. These targets set emissions reduction goals for Scope 1 and 2, and for Scope 3 purchased goods and services, using a 2023 baseline. Rackspace has stated its intention to achieve net-zero emissions-including neutralisation of any residual emissions-for Scopes 1, 2, and 3 by 2045.

At Rackspace Technology we are making sustainability a measurable part of how we run the company. 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.

The organisation also highlighted efficiency upgrades at its Dallas/Fort Worth data centre, where upgrades to automation and building management systems resulted in approximately 1,700 megawatt-hours of power savings between 2023 and 2024.

IT lifecycle and operational impact

Rackspace reported a 31 per cent reduction in IT services emissions, which it attributes to greater efficiencies in cloud operations. The company has also formalised a circular IT lifecycle policy aimed at promoting recycling, upcycling, and minimising waste from IT asset disposal. Over 1,200 devices were donated worldwide to help bridge the digital divide and promote responsible consumption, particularly in underserved communities.

Leadership at the company has contributed to published guidance on responsible and sustainable artificial intelligence, co-authoring SustainableIT.org's "IT Toolkit for Responsible and Sustainable AI." This resource is designed to support broader industry adoption of sustainable AI practices.

Certifications and workforce development

Rackspace's workforce development programme recorded over 13,000 new technical certifications since 2023, spanning technologies such as AWS, Microsoft Azure, Google Cloud, Cisco, Oracle, Red Hat, SAP, and VMware, among others. Ninety-five per cent of Rackspace employees have also obtained AI-ready certification, supporting the company's sustainable digital transformation agenda.

The company also permits each employee up to forty hours of volunteer time off each year, reporting 23,000 hours of community service logged and USD $160,000 raised for local causes in recent periods. The company's foundation has raised over USD $8 million for educational programmes, benefitting more than 10,000 students through STEM and holistic learning initiatives.

In reviewing its progress, Rackspace Technology states that its sustainability performance is underpinned by transparency, third-party reviews, and consistent governance practices.