diff --git a/app/models/ems_refresh/save_inventory_physical_infra.rb b/app/models/ems_refresh/save_inventory_physical_infra.rb
index ab4f01a16717..6255c70add1d 100644
--- a/app/models/ems_refresh/save_inventory_physical_infra.rb
+++ b/app/models/ems_refresh/save_inventory_physical_infra.rb
@@ -1,6 +1,7 @@
 #
 # Calling order for EmsPhysicalInfra:
 # - ems
+#   - physical_racks
 #   - physical_servers
 #
 
@@ -21,10 +22,7 @@ def save_ems_physical_infra_inventory(ems, hashes, target = nil)
       _log.debug("#{log_header} hashes:\n#{YAML.dump(hashes)}")
     end
 
-    child_keys = [
-      :physical_servers,
-      :customization_scripts
-    ]
+    child_keys = %i(physical_racks physical_servers customization_scripts)
 
     # Save and link other subsections
     save_child_inventory(ems, hashes, child_keys, target)
@@ -37,17 +35,25 @@ def save_ems_physical_infra_inventory(ems, hashes, target = nil)
     ems
   end
 
+  def save_physical_racks_inventory(ems, hashes, target = nil)
+    target = ems if target.nil?
+
+    deletes = target == ems ? :use_association : []
+
+    save_inventory_multi(ems.physical_racks, hashes, deletes, [:ems_ref])
+    store_ids_for_new_records(ems.physical_racks, hashes, :ems_ref)
+  end
+
   def save_physical_servers_inventory(ems, hashes, target = nil)
     target = ems if target.nil?
 
-    ems.physical_servers.reset
-    deletes = if target == ems
-                :use_association
-              else
-                []
-              end
+    deletes = target == ems ? :use_association : []
+
+    child_keys = %i(computer_system asset_detail hosts)
+    hashes.each do |h|
+      h[:physical_rack_id] = h.delete(:rack).try(:[], :id)
+    end
 
-    child_keys = [:computer_system, :asset_detail, :hosts]
     save_inventory_multi(ems.physical_servers, hashes, deletes, [:ems_ref], child_keys)
     store_ids_for_new_records(ems.physical_servers, hashes, :ems_ref)
   end
@@ -55,12 +61,7 @@ def save_physical_servers_inventory(ems, hashes, target = nil)
   def save_customization_scripts_inventory(ems, hashes, target = nil)
     target = ems if target.nil?
 
-    ems.customization_scripts.reset
-    deletes = if target == ems
-                :use_association
-              else
-                []
-              end
+    deletes = target == ems ? :use_association : []
 
     save_inventory_multi(ems.customization_scripts, hashes, deletes, [:manager_ref])
     store_ids_for_new_records(ems.customization_scripts, hashes, :manager_ref)
diff --git a/app/models/ext_management_system.rb b/app/models/ext_management_system.rb
index ca0cd10ed9ba..14c6d92aebaa 100644
--- a/app/models/ext_management_system.rb
+++ b/app/models/ext_management_system.rb
@@ -64,6 +64,7 @@ def self.api_allowed_attributes
   has_many :resource_pools, :foreign_key => "ems_id", :dependent => :destroy, :inverse_of => :ext_management_system
   has_many :customization_specs, :foreign_key => "ems_id", :dependent => :destroy, :inverse_of => :ext_management_system
   has_many :storage_profiles,    :foreign_key => "ems_id", :dependent => :destroy, :inverse_of => :ext_management_system
+  has_many :physical_racks,      :foreign_key => "ems_id", :dependent => :destroy, :inverse_of => :ext_management_system
   has_many :physical_servers,    :foreign_key => "ems_id", :dependent => :destroy, :inverse_of => :ext_management_system
   has_many :customization_scripts, :foreign_key => "manager_id", :dependent => :destroy, :inverse_of => :ext_management_system
 
diff --git a/app/models/manageiq/providers/physical_infra_manager.rb b/app/models/manageiq/providers/physical_infra_manager.rb
index 2c075a16ae83..4d0efe300ceb 100644
--- a/app/models/manageiq/providers/physical_infra_manager.rb
+++ b/app/models/manageiq/providers/physical_infra_manager.rb
@@ -2,6 +2,7 @@ module ManageIQ::Providers
   class PhysicalInfraManager < BaseManager
     include SupportsFeatureMixin
 
+    virtual_total :total_physical_racks,      :physical_racks
     virtual_total :total_physical_servers,    :physical_servers
     virtual_column :total_hosts,              :type => :integer
     virtual_column :total_vms,                :type => :integer
diff --git a/app/models/physical_rack.rb b/app/models/physical_rack.rb
new file mode 100644
index 000000000000..937a2711d6f2
--- /dev/null
+++ b/app/models/physical_rack.rb
@@ -0,0 +1,6 @@
+class PhysicalRack < ApplicationRecord
+  belongs_to :ext_management_system, :foreign_key => :ems_id,
+             :class_name => "ManageIQ::Providers::PhysicalInfraManager", :inverse_of => :physical_racks
+
+  has_many :physical_servers, :dependent => :destroy, :inverse_of => :physical_rack
+end
diff --git a/app/models/physical_server.rb b/app/models/physical_server.rb
index 841b9f80b068..4154b3efaa84 100644
--- a/app/models/physical_server.rb
+++ b/app/models/physical_server.rb
@@ -18,6 +18,7 @@ class PhysicalServer < ApplicationRecord
 
   validates :vendor, :inclusion =>{:in => VENDOR_TYPES}
   belongs_to :ext_management_system, :foreign_key => :ems_id, :class_name => "ManageIQ::Providers::PhysicalInfraManager"
+  belongs_to :physical_rack
 
   has_one :computer_system, :as => :managed_entity, :dependent => :destroy
   has_one :hardware, :through => :computer_system