AMD Signs An Agreement With Rackspace

As part of the agreement, both companies will dedicate sales and marketing teams to jointly pursue opportunities across regulated industries

AMD has entered into a definitive agreement with Rackspace Technology to deploy an initial 30 MW footprint of AMD-based compute infrastructure across Rackspace’s global data centers between late 2026 and 2028. The agreement formalises the Memorandum of Understanding (MoU) announced on May 7, 2026, and positions AMD as a strategic silicon-layer partner within Rackspace’s governed AI ecosystem.

The deployment will integrate AMD Instinct™ GPUs, including the MI355X, MI350P, and future-generation accelerators, alongside AMD EPYC™ CPUs to power Rackspace’s Enterprise AI Cloud architecture. The infrastructure is designed to support regulated enterprise sectors such as healthcare, financial services, and public sector organisations that require secure, scalable, and accountable AI deployments.

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At full deployment, the 30 MW dedicated AMD compute capacity will enable enterprises to run large-scale AI training, inference, and agentic workloads while ensuring governance, compliance, and operational accountability. Healthcare organisations have already expressed early interest in leveraging the platform for clinical AI applications and large-scale inference workloads.

“Enterprises in regulated industries need AI infrastructure that is governed from the ground up, with one operator accountable for business outcomes, not a collection of vendors each owning a piece,” said Gajen Kandiah, CEO of Rackspace Technology. He added that the collaboration delivers a governed AI stack with a single accountable partner from silicon to business outcomes.

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Dan McNamara, Senior Vice President and General Manager of Compute and Enterprise AI at AMD, emphasised the importance of providing customers with the right mix of accelerated and general-purpose compute. He noted that the partnership combines AMD’s advanced AI computing solutions with Rackspace’s governed cloud operating model, enabling enterprises to deploy AI infrastructure with greater openness, scalability, and accountability.

As part of the agreement, both companies will dedicate sales and marketing teams to jointly pursue opportunities across regulated industries. The collaboration will also accelerate the rollout of four previously announced offerings: Enterprise AI Cloud, Enterprise Inference Engine, Inference as a Service, and Bare Metal AMD Instinct.

Together, AMD and Rackspace aim to establish a new category of managed enterprise AI infrastructure that provides an alternative to traditional bare-metal deployments. With enterprises increasingly moving from AI experimentation to agentic workflows embedded within mission-critical systems, the partnership seeks to address growing demand for governed, outcome-driven AI infrastructure at scale.

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Nitisha Dubey
Nitisha Dubey
Nitisha Dubey is a journalist at EFY. She focuses on startups and innovations with a deep interest in new technologies and business models.

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