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By Asma Adhimi
AMD and Rackspace Technology have signed a definitive agreement to deploy 30MW of AMD-based AI compute capacity across Rackspace’s global data center footprint, marking a significant step in the development of AI infrastructure tailored for regulated industries.
The deal formalizes the memorandum of understanding (MOU) announced by the companies in May and positions AMD as a strategic silicon partner within Rackspace’s enterprise AI platform. Deployment is expected to begin in late 2026 and continue through 2028.
For eeNews Europe readers, the agreement highlights the growing demand for AI infrastructure that combines high-performance computing with governance, sovereignty and regulatory compliance. It also reflects how semiconductor suppliers and cloud infrastructure providers are increasingly collaborating to address enterprise AI deployments beyond hyperscale cloud environments.
Under the agreement, Rackspace will deploy an initial 30MW of dedicated AMD compute resources using a combination of AMD Instinct GPUs, including the MI355X and MI350P families, alongside AMD EPYC CPUs. The infrastructure will form part of Rackspace’s Enterprise AI Cloud architecture, which is designed to allocate workloads to the most suitable compute resources while maintaining operational accountability.
At full deployment, the capacity is expected to support AI applications in regulated sectors such as healthcare, where organizations are looking for accelerated compute resources for clinical AI and large-scale inference workloads.
Rackspace says the collaboration creates a new category of managed AI infrastructure aimed at enterprises that require strict governance and operational oversight.
“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, Rackspace Technology. “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.”
The partnership will also accelerate the rollout of four offerings first outlined in the MOU: Enterprise AI Cloud, Enterprise Inference Engine, Inference as a Service, and Bare Metal AMD Instinct. Together, these services are intended to provide a complete AI stack spanning hardware infrastructure through to managed inference services.
AMD sees the agreement as an opportunity to address the growing need for a mix of accelerated and general-purpose compute resources as enterprises move AI projects from pilot phases into production environments.
“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, Compute and Enterprise AI, AMD. “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 companies will jointly invest in sales and marketing efforts targeting customers in regulated industries. The move comes as enterprises increasingly shift from AI experimentation toward agentic AI workflows embedded within core business systems, driving demand for infrastructure that can offer both performance and accountability.
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