Rackspace Technology and Palantir Forge a Managed‑Ops Partnership to Accelerate AI Workloads

On February 18, 2026, Rackspace Technology announced a collaboration with data‑analytics powerhouse Palantir Technologies. The two companies will jointly run Palantir’s Foundry and Artificial Intelligence Platform (AIP) in production environments, employing Rackspace’s governed managed‑operations framework. This announcement follows the company’s broader strategy to deepen its cloud‑service portfolio and expand its footprint among large‑scale enterprise customers.

The Essence of the Agreement

The partnership leverages Rackspace’s expertise in managed cloud services, colocation, and enterprise security to provide a fully governed environment for Palantir’s flagship platforms. While Palantir supplies the data‑integration and AI capabilities, Rackspace will deliver the operational backbone—including deployment, monitoring, and compliance oversight. The arrangement is designed to enable customers to adopt Foundry and AIP without the burden of building and maintaining the underlying infrastructure.

Key elements of the deal include:

  • Governed Managed Operations: Rackspace will apply its proven governance model to ensure data integrity, regulatory compliance, and operational resilience for Palantir workloads.
  • Production‑Ready Deployment: The collaboration aims to move both Foundry and AIP from proof‑of‑concept stages to production use cases, accelerating time‑to‑value for enterprise clients.
  • Global Reach: With Rackspace’s worldwide colocation and managed‑cloud footprint, customers can deploy Palantir solutions in any region that meets their compliance and performance requirements.

Contextualizing the Move in a Rapidly Expanding Market

The partnership arrives amid a bullish outlook for the global cloud storage sector. Allied Market Research estimates the market will grow from USD 98.8 billion in 2023 to USD 777.6 billion by 2033, at a CAGR of 21.9 % from 2024 to 2033. The surge is driven by escalating data volumes—projected to surpass 170 zettabytes by 2025—and the increasing need for scalable, secure, and cost‑effective storage solutions across industries such as BFSI, healthcare, and manufacturing.

Rackspace’s move to partner with Palantir aligns with this macro‑trend. By offering a turnkey solution that couples advanced AI analytics with robust cloud infrastructure, Rackspace positions itself to capture a share of the growing demand for intelligent data platforms. The partnership also dovetails with the company’s mission to deliver compliance assistance and enterprise security, thereby mitigating the security concerns that often hinder cloud adoption.

Financial Snapshot

As of the close on February 16, 2026, Rackspace’s share price stood at USD 0.419, reflecting a sharp decline from its 52‑week high of USD 3.03 and a modest increase from its 52‑week low of USD 0.393. With a market capitalization of approximately USD 102 million, the company’s price‑earnings ratio remains negative at –0.4, indicating that earnings per share are still below the price threshold. These metrics underscore the company’s ongoing investment in growth initiatives, such as the Palantir partnership, that may take time to translate into positive earnings.

Looking Ahead

The alliance with Palantir is expected to create several tangible benefits for Rackspace customers:

  • Accelerated Digital Transformation: Clients can deploy AI‑driven analytics faster, deriving insights from data faster and at lower operational risk.
  • Enhanced Compliance: Rackspace’s governance framework helps meet regulatory requirements across data‑sensitive industries.
  • Scalable Infrastructure: Leveraging Rackspace’s global data‑center network ensures high availability and performance for Palantir workloads.

In a competitive market where visibility and operational excellence are paramount, Rackspace’s collaboration with Palantir represents a strategic step toward solidifying its standing as a leading managed‑cloud and AI services provider. The partnership not only aligns with the projected growth of cloud storage but also offers a compelling value proposition for enterprises seeking to harness the power of data while maintaining stringent control over their operational environment.