Rackspace Plans to Bring Hundreds of Employees to Austin

July 24, 2014 by Kate Harrington

Big news broke recently about a future tenant at Austin Community College’s Highland Mall campus, and it means a big step forward for Austin infill development.

As part of a public-private partnership with ACC, San Antonio tech company Rackspace Hosting will open offices in the Highland campus and bring 570 employees to Austin. The Rackspace and ACC partnership should mean opportunities for ACC students to have paid internships and technology training. ACC’s Highland campus will open its first phase this fall.

Rackspace, a cloud management company, plans to open the Highland offices in 2015 in space that used to house Dillard’s. The nearly 200,000-square foot space will be renovated, and Rackspace has said it plans to expand its workforce there in the future.

ACC’s board of trustees voted earlier this month to authorize contract negotiations with Rackspace, the Austin American-Statesman reported.

The news may also a shot in the arm for proponents of Project Connect’s proposed Central Corridor route. The current route would run from the East Riverside Corridor to the Highland campus. Many transit advocates have worried out loud that the Highland section of the planned route wouldn’t have the ridership to support a high capacity transit line.

The Rackspace move, along with ACC’s development of its Highland campus, might allay some of those worries.

This is not the first time Rackspace has shown a dedication to urban infill development. Rackspace’s Geekdom program, a technology-focused collaborative co-working space, recently expanded its downtown San Antonio presence with an eye toward a downtown entrepreneurial tech district.

We’d love to hear about your thoughts on Rackspace’s partnership with ACC at the Highland campus. Leave your comments below!

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Written by Kate Harrington

Kate is a former reporter, most recently for the Austin Business Journal, where she covered real estate, economic development and transportation. Since 2010 she has been running Thumbtack Communications. Thumbtack provides writing, editing and marketing services. Before moving to Austin in 2002 Kate lived in her native New England, which she still visits often to escape the Texas heat.