Rackspace Unveils 2025 Sustainability Report
▼ Summary
– Rackspace released its 2025 Sustainability Report detailing progress toward net-zero carbon emissions and enhanced operational efficiency through strategic partnerships and innovation.
– The company achieved a 10% total emissions reduction from 2023 to 2024, including a 20% drop in Scope 1 & 2 emissions and a 9% reduction in Scope 3 emissions.
– Rackspace’s near-term and long-term greenhouse gas reduction targets were validated by the Science Based Targets initiative, aligning with UN Sustainable Development Goals.
– Approximately 28.4% of electricity used in Rackspace data centers in 2024 was matched through renewable energy agreements, with 80% of global data centers currently powered by renewable energy.
– The company demonstrated workforce development with 13,000+ technical certifications earned since 2023 and 95% of employees AI-ready certified, while also contributing to social impact through volunteer programs and foundation initiatives.
Rackspace Technology has released its 2025 Sustainability Report, detailing significant strides toward achieving net-zero carbon emissions and enhancing operational efficiency. The comprehensive document outlines the company’s ongoing commitment to environmental responsibility, strategic partnerships, and innovation, reinforcing its alignment with the United Nations Sustainable Development Goals. As a leading provider of hybrid cloud and AI solutions, Rackspace is positioning itself at the forefront of sustainable practices within the technology sector.
The report highlights that Rackspace’s Greenhouse Gas reduction targets have been validated by the Science Based Targets initiative (SBTi), underscoring measurable progress aligned with global climate action objectives. Gajen Kandiah, CEO of Rackspace Technology, emphasized the company’s dedication to integrating sustainability into its core operations. He noted that in 2025, Rackspace achieved a 10 percent reduction in total emissions compared to its 2023 baseline, improved efficiency at key facilities, and extended these disciplined approaches to help customers lower both operational costs and carbon footprints.
Renewable energy remains a cornerstone of Rackspace’s strategy. In 2024, approximately 28.4 percent of electricity used across its data centers was matched through Power Purchase Agreements and Renewable Energy Certificates. The company intends to expand long-term renewable energy contracting as market conditions permit. Rackspace’s SBTi-validated near-term targets cover Scope 1 and Scope 2 emissions, as well as Scope 3 emissions from purchased goods and services. Its long-term net-zero goal encompasses all three scopes, with plans to neutralize residual emissions by 2045.
Key outcomes featured in the report include a 10 percent total emissions reduction achieved from 2023 to 2024, driven by a 20 percent decrease in Scope 1 and 2 emissions and a 9 percent drop in Scope 3 emissions. The relocation of its San Antonio headquarters resulted in an 80 percent reduction in facility emissions, shrinking from 800,000 square feet to 80,000 square feet and saving 6,007 tons of CO₂e. Additionally, 80 percent of Rackspace’s global data centers are now powered by renewable energy, with ongoing efforts to reach 100 percent through the RE100 initiative and strategic energy partnerships.
Efficiency upgrades at the Dallas/Fort Worth data center, including enhanced automation and building management systems, reduced power consumption by roughly 1,700 MWh. The company also established a third-party audited baseline for Scope 1, 2, and 3 emissions, strengthening its environmental data capabilities through verified carbon accounting and double materiality assessments.
In the realm of responsible innovation, Rackspace leaders co-authored SustainableIT.org’s “IT Toolkit for Responsible and Sustainable AI,” promoting scalable implementation of ethical AI practices. The company formalized a Circular IT lifecycle policy to encourage recycling, upcycling, and waste reduction, contributing to a 31 percent reduction in IT services emissions. Through its global device donation program, Rackspace provided over 1,200 devices to underserved communities, supporting digital access and responsible consumption.
Employee development and community engagement also feature prominently. Since 2023, staff have earned more than 13,000 technical certifications across leading cloud and technology platforms, including AWS, Microsoft Azure, and Google Cloud. An impressive 95 percent of employees are now AI-ready certified, exceeding internal targets for workforce preparedness. Each employee receives 40 hours of volunteer time off annually, resulting in 23,000 hours logged and $160,000 raised for local causes during recent reporting periods. The Rackspace Foundation has raised over $8 million for education, supporting more than 10,000 students through STEM and holistic programs.
For further details, the complete 2025 Sustainability Report is accessible online.
(Source: ITWire Australia)