diff --git a/app/models/ems_refresh/save_inventory_physical_infra.rb b/app/models/ems_refresh/save_inventory_physical_infra.rb
index ab4f01a16717..18264e9f265f 100644
--- a/app/models/ems_refresh/save_inventory_physical_infra.rb
+++ b/app/models/ems_refresh/save_inventory_physical_infra.rb
@@ -2,6 +2,8 @@
 # Calling order for EmsPhysicalInfra:
 # - ems
 #   - physical_servers
+#   - physical_racks
+#     - physical_servers
 #
 
 module EmsRefresh::SaveInventoryPhysicalInfra
@@ -21,10 +23,7 @@ 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_servers physical_racks customization_scripts)
 
     # Save and link other subsections
     save_child_inventory(ems, hashes, child_keys, target)
@@ -37,17 +36,23 @@ 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 : []
+
+    ems.physical_racks.reset
+    save_inventory_multi(ems.physical_racks, hashes, deletes, [:uid_ems], [:physical_servers])
+  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)
 
-    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
@@ -56,11 +61,7 @@ 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 56cd3c3aea67..33287ecac374 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 c937015716b6..d3a535fde4bb 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
diff --git a/spec/factories/physical_rack.rb b/spec/factories/physical_rack.rb
new file mode 100644
index 000000000000..00f100085f40
--- /dev/null
+++ b/spec/factories/physical_rack.rb
@@ -0,0 +1,3 @@
+FactoryGirl.define do
+  factory :physical_rack
+end