What Rackspace Technology, Inc. told the SEC could break it.

Rackspace is a large consumer of power for its data centers (~$36M in 2025) and is exposed to power-price volatility, with consumption expected to rise as private-cloud sales grow.

“We consume a large quantity of power to operate our data centers and as such are exposed to risk associated with fluctuations in the price of power. During 2025, we incurred ap proximately $36 million in costs to power our data”

Rackspace carries substantial debt (Senior Secured Notes and Senior Facilities, much variable-rate) with restrictive covenants and has pledged substantially all of its assets as collateral; default/acceleration could leave assets insufficient to repay.

“We have pledged substantially all of our assets as collateral under the New Senior Facilities and the Senior Facilities.”

Tariffs (including foreign retaliatory tariffs amid US-China tensions) raise hardware costs and reduce customers' IT spending, while OFAC/Commerce trade-sanction and export-control compliance restricts where Rackspace can sell and risks penalties.

“non-U.S. governments have imposed and may continue to impose tariffs (including retaliatory tariffs) on the import of U.S. goods, which could similarly impact the amount of IT spending available to customers located outside of the U.S.”

Rackspace depends on third-party providers for data-center space (leased from landlords), equipment, equipment maintenance and licensed software; loss or problems with these providers could impede growth or cause customer losses.

“We rely on third-party providers to supply data center space, equipment and maintenance. For example, we lease data center space from third-party landlords, purchase equipment from equipment providers and source equipment maintenance through third parties.”