30 Best and Worst Data Center Stocks

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12. Rackspace Technology, Inc. (NASDAQ:RXT)

Upside Potential: 27%

Number of hedge funds: 13

Rackspace Technology, Inc. (NASDAQ:RXT) provides a comprehensive range of management and support services across private, hybrid, and hyperscale public cloud platforms. Its services include application services, data management, colocation, managed hosting, professional services, and security and compliance. The company operates 40 colocation data centers strategically located in key markets worldwide.

Rackspace Technology, Inc. (NASDAQ:RXT) has been active in recent months. In January 2025, the company made significant changes to its board of directors while maintaining its financial guidance for Q4 2024. In October 2024, Rackspace entered into a Strategic Collaboration Agreement (SCA) with Amazon Web Services (AWS), aiming to provide comprehensive solutions including cloud advisory, financial operations (fin-ops), migration, modernization, cloud data, machine learning (ML), and generative AI services. Prior to this, Rackspace launched the Rackspace Rapid Migration Offer (RRMO), designed to expedite data center migrations to AWS. Through this agreement, Rackspace Technology, Inc. (NASDAQ:RXT) aims to leverage its industry expertise alongside AWS’s advanced technologies to help customers accelerate innovation.

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