AMD And Rackspace Sign Agreement For Phased 30 MW AI Compute Deployment Across Global Data Centres

AMD and Rackspace Technology have signed a definitive agreement for the phased deployment of 30 MW of AMD-based AI compute across Rackspace’s global data centres, with rollout beginning in late 2026 and running through 2028.

The agreement formalises a Memorandum of Understanding announced on 7 May 2026 and establishes AMD as a strategic technology partner at the silicon layer of Rackspace’s governed AI stack.

The collaboration is aimed at regulated enterprise environments – industries such as healthcare, financial services and government where governance, sovereignty and uptime requirements are non-negotiable. Healthcare providers have already expressed early interest in using the infrastructure for clinical AI and inference at scale.

A Governed Stack From Silicon To Outcomes

The deployment will incorporate both AMD Instinct GPUs – including MI355X, MI350P and future successor solutions – and AMD EPYC CPUs inside an integrated Enterprise AI Cloud architecture.

Rackspace has positioned the arrangement as offering something distinct from the typical bare metal model: a governed AI stack with a single accountable partner responsible for performance and outcomes end to end, rather than a collection of vendors each owning a piece.

Gajen Kandiah, CEO at Rackspace Technology, framed the collaboration as addressing a gap in the market for regulated industries.

“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,” Kandiah explained.

“This collaboration combines the right compute with the right operating model and delivers something the market hasn’t offered before: a governed AI stack with one accountable partner from silicon to outcomes,” he added.

AMD’s Enterprise AI Push

For AMD, the deal represents an expansion of its enterprise AI infrastructure footprint through a managed services model, rather than relying solely on direct hardware sales.

Dan McNamara, Senior Vice President and General Manager of Compute and Enterprise AI at AMD, pointed to the need for infrastructure that can match different types of compute to different workloads.

“As enterprise AI evolves, customers need infrastructure that can deliver the right mix of accelerated and general-purpose compute for each workload,” McNamara noted.

“By bringing together AMD AI compute solutions and Rackspace’s governed cloud operating model, we are helping regulated enterprises deploy high-performance AI infrastructure with the openness, scalability and accountability needed to run AI at enterprise scale,” he added.

Four Integrated Capabilities

The agreement will accelerate delivery of four integrated capabilities first outlined in the original MOU: Enterprise AI Cloud, Enterprise Inference Engine, Inference as a Service and Bare Metal AMD Instinct.

Together, these cover the full stack from bare metal compute through to fully operated inference, giving enterprises a range of options for how they consume AMD-based AI infrastructure through Rackspace.

The architecture is designed to let Rackspace route each workload to the appropriate compute resource, whether that is GPU-accelerated processing for training and inference or general-purpose CPU workloads, with full accountability for performance.

Joint Go-To-Market Effort

Both companies have committed to dedicating sales and marketing resources to identify and engage enterprise customers for AMD compute-powered infrastructure. Each company will commit personnel to jointly develop and pursue customer opportunities across regulated industries.

The companies have framed the collaboration as establishing a new category of managed enterprise AI infrastructure, positioned as an alternative to the bare metal model that has dominated enterprise AI deployments to date.

The agreement reflects broader market dynamics as enterprises shift from AI experimentation to running agentic workflows inside core business systems – a transition that is increasing demand for governed and accountable infrastructure.

At full deployment, the 30 MW of dedicated AMD compute across Rackspace’s footprint will represent capacity to serve regulated enterprise workloads at scale.

Last Updated on June 17, 2026 by Nick Ross