AMD and Rackspace sign deal for 30 MW AI compute deployment

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Key Highlights

AMD and Rackspace Technology have entered a definitive agreement to deploy a 30 MW footprint for AMD-based compute across global data centers from late 2026 through 2028. The collaboration leverages AMD Instinct GPUs and EPYC CPUs to support regulated enterprise workloads, including healthcare, through a governed AI stack. Both companies will dedicate resources to jointly pursue opportunities in regulated industries.

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AMD and Rackspace Technology have signed a definitive agreement for the phased deployment of an initial 30 MW footprint dedicated to AMD-based compute deployments across Rackspace's global data centers. The deployment is scheduled to begin in late 2026 and continue through 2028, operationalizing the Memorandum of Understanding announced on May 7, 2026. This agreement establishes AMD as a strategic technology partner at the silicon layer of Rackspace's governed AI stack.

At full deployment, the 30 MW of dedicated AMD compute will represent significant capacity to serve regulated enterprise workloads. This includes healthcare providers who have expressed early interest in accelerated compute for clinical AI and inference at scale. The collaboration incorporates both AMD Instinct GPUs, including MI355X, MI350P, and future successor solutions, and AMD EPYC CPUs inside an integrated Enterprise AI Cloud architecture, enabling Rackspace to route each workload to the right compute with full accountability for performance and outcomes end to end.

Gajen Kandiah, CEO of Rackspace Technology, emphasized the need for a unified operator in 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," he said. "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."

Dan McNamara, senior vice president and general manager of Compute and Enterprise AI at AMD, highlighted the technical synergy. "As enterprise AI evolves, customers need infrastructure that can deliver the right mix of accelerated and general-purpose compute for each workload," McNamara stated. "By bringing together leadership 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."

The partnership aims to deliver four integrated capabilities announced with the MOU: Enterprise AI Cloud, Enterprise Inference Engine, Inference as a Service, and Bare Metal AMD Instinct. These offerings provide a complete, governed stack from bare metal compute through fully operated inference. The companies intend to establish a new category of managed enterprise AI infrastructure, offering enterprises an alternative to the bare metal model. The shift from AI experiments to agentic workflows running inside core enterprise systems is accelerating demand for exactly the kind of governed, accountable infrastructure this collaboration is built to deliver.

Key Details Description
Total Compute Footprint 30 MW
Deployment Period Late 2026 through 2028
Hardware Components AMD Instinct GPUs (MI355X, MI350P), AMD EPYC CPUs
Key Capabilities Enterprise AI Cloud, Enterprise Inference Engine, Inference as a Service, Bare Metal AMD Instinct
Disclaimer: This article is AI-generated using data from ViewTrade. ScanX is not liable for any inaccuracies.

How will this partnership impact AMD's market share against competitors like NVIDIA in the regulated enterprise AI sector?

What specific revenue contributions does AMD expect from this 30 MW deployment once fully operational in 2028?

Will Rackspace expand this dedicated AMD footprint beyond the initial 30 MW if demand from regulated industries exceeds expectations?

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