AMD & Rackspace sign AI cloud deal for regulated firms
Tue, 16th Jun 2026 (Today)
AMD and Rackspace Technology have signed a definitive agreement to deploy 30 MW of AMD-based AI compute across Rackspace data centres. The rollout will take place in phases across Rackspace's global footprint.
The agreement converts an earlier memorandum into a commercial arrangement and makes AMD a strategic silicon partner in Rackspace's AI infrastructure offering for regulated and sovereign environments.
The deployment will be dedicated to AMD compute systems in Rackspace data centres from late 2026 through 2028. The build-out is intended to support regulated enterprise workloads, with healthcare identified as one sector where there has already been early interest in clinical AI and large-scale inference.
The infrastructure will use AMD Instinct GPUs, including MI355X and MI350P, alongside AMD EPYC CPUs. The systems will sit within Rackspace's Enterprise AI Cloud architecture, designed to direct workloads to different compute resources under a single operating model.
Regulated focus
The companies are targeting industries where governance, sovereignty and operational control are core requirements. Rackspace is positioning the arrangement as an alternative to models in which customers assemble infrastructure from multiple suppliers and manage separate layers themselves.
The partnership also covers the delivery of four elements first outlined in the earlier memorandum: Enterprise AI Cloud, Enterprise Inference Engine, Inference as a Service, and Bare Metal AMD Instinct. Together, they are intended to span infrastructure from physical compute through managed inference services.
The move comes as companies seek to shift AI work from trial projects into core business systems. That transition is increasing demand for infrastructure with clear accountability in sectors subject to tighter rules on data handling and location.
Under the agreement, both companies will assign sales and marketing staff to pursue customers jointly in regulated industries. They will also commit personnel to develop opportunities for AMD-based compute infrastructure.
Gajen Kandiah, Chief Executive Officer of Rackspace Technology, outlined the company's view of the market need. "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 Kandiah.
"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 said.
Compute mix
AMD framed the agreement around demand for different types of processing within enterprise AI systems, where training, inference and other workloads may require a mix of graphics and general-purpose processors.
"As enterprise AI evolves, customers need infrastructure that can deliver the right mix of accelerated and general-purpose compute for each workload," said Dan McNamara, Senior Vice President and General Manager of Compute and Enterprise AI at AMD.
"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 said.
The arrangement gives Rackspace a sizeable AMD allocation if the full 30 MW is installed, adding to competition among infrastructure providers seeking access to AI chips and turning that supply into managed services for businesses with compliance requirements. It also signals AMD's push to deepen its role in enterprise AI deployments beyond chip sales by tying its processors more closely to a managed cloud operating environment.
At full deployment, the dedicated AMD footprint would represent significant capacity for regulated enterprise workloads, including healthcare users interested in clinical AI and inference at scale.