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UPDATE - Rackspace Technology Secures VMware Sovereign Cloud Partner Status

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LONDON, Jan. 16, 2026 (GLOBE NEWSWIRE) --  Rackspace Technology® (NASDAQ:RXT), a leading end-to-end hybrid cloud and AI solutions company, today announced its UK Sovereign Services has achieved the VMware

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AI Summary

Rackspace Technology achieves VMware Sovereign Cloud Partner Status in the UK. The status strengthens Rackspace's ability to handle sensitive data. Sovereign Services designed for strict data location and processing control. Milestone supports UK public sector and regulated industries. Rackspace partners with public sector and financial services for cloud solutions.

Sentiment Rationale

The achievement of VMware Sovereign Cloud Partner Status enhances RXT's competitive edge. This is similar to AWS's success when gaining compliance certifications, which positively impacted its stock.

Trading Thesis

Building infrastructure for regulated industries may yield sustained growth. Historical examples include cloud providers' consistent client acquisition post compliance achievements.

Market-Moving

  • Rackspace Technology achieves VMware Sovereign Cloud Partner Status in the UK.
  • The status strengthens Rackspace's ability to handle sensitive data.
  • Sovereign Services designed for strict data location and processing control.

Key Facts

  • Rackspace Technology achieves VMware Sovereign Cloud Partner Status in the UK.
  • The status strengthens Rackspace's ability to handle sensitive data.
  • Sovereign Services designed for strict data location and processing control.
  • Milestone supports UK public sector and regulated industries.
  • Rackspace partners with public sector and financial services for cloud solutions.

Companies Mentioned

  • VMW (VMW)
  • AMZN (AMZN)
  • MSFT (MSFT)

Corporate Developments

The article highlights a significant milestone for Rackspace, enhancing growth potential in regulated markets.

LONDON, Jan. 16, 2026 (GLOBE NEWSWIRE) --  Rackspace Technology® (NASDAQ:RXT), a leading end-to-end hybrid cloud and AI solutions company, today announced its UK Sovereign Services has achieved the VMware Sovereign Cloud Partner Status, reinforcing Rackspace's ability to store, process, and protect UK organisations' most sensitive data.

Rackspace Sovereign Services delivers a fully managed, private cloud platform designed specifically for organisations that require strict control over where data is located and how it is processed. Built on proven VMware technologies and operated from UK-based data centres, the service combines high availability, resilient networking, and integrated security controls to reduce operational complexity for customers while accelerating cloud adoption.

"With Rackspace's digital Sovereign Cloud, organisations can optimise private cloud architecture to ensure mission-critical applications deliver predictable performance, enhanced security, and operational reliability," said, Rick Martire, general manager of Rackspace Sovereign Services. "This is a major milestone supporting the UK Public Sector and further affirms our commitment to regulated industry clouds," Martire added.

Rackspace partners with UK public sector organisations, regulated financial services firms, and healthcare providers to deliver end-to-end solutions that combine cloud infrastructure with expert managed services and security operations.

The VMware Sovereign Cloud Partner Status is awarded to VMware Cloud Service Providers (CSPs) that meet strict criteria for providing cloud services with full data sovereignty and jurisdictional control within a specific country or region. It validates a partner's ability to ensure data remains under local control, adheres to national regulations for data privacy and security, and is housed in data centers managed by local entities. 

About Rackspace Technology

Rackspace Technology is a leading end-to-end hybrid cloud and AI solutions company. We can design, build, and operate our customers' cloud environments across all major technology platforms, irrespective of technology stack or deployment model. We partner with our customers at every stage of their cloud journey, enabling them to modernise applications, build new products, and adopt innovative technologies.

Disclaimer

This press release contains forward-looking statements subject to risks and uncertainties that may cause actual results to differ materially. Rackspace Technology undertakes no obligation to update these statements. Rackspace Technology and Rackspace are trademarks of Rackspace US, Inc. VMware and VMware Sovereign Cloud are trademarks of VMware, Inc. All other marks are property of their respective owners. This press release is for informational purposes only and does not constitute financial promotion, investment advice, or an offer to sell securities.

Media Contact:

Cheryl Amerine, publicrelations@rackspace.com



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