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Freedom251 › Blog › Blackstart Digital

Blackstart Digital Agrees to Acquire Former IBM Almaden Campus in San Jose

By Freedom251 Team · · 3 min read

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Blackstart Digital has agreed to acquire IBM’s former Almaden Research Center in South San Jose, with the deal expected to close by the end of 2026, according to local reporting. The transaction has not been reported as closed, and its financial terms have not been disclosed. The City has rezoned the developed campus for industrial park use, but that does not approve a specific data center project; no further property application had been filed at the time of the latest local report.

What Blackstart Digital has agreed to buy

The former IBM Almaden Research Center sits at 650 Harry Road in San Jose’s Coyote Valley. San José Spotlight reports that the developed campus covers 35 acres and contains seven buildings totaling more than 500,000 square feet. The wider property also includes 565 acres of open space.

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Blackstart Digital entered an agreement to acquire the campus, and local reporting says the expected closing is by year end 2026. Data Center Dynamics likewise reported a possible year-end closing and said the deal terms were undisclosed. These reports describe a pending transaction, not a completed sale: San José Spotlight and Data Center Dynamics.

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What the company has said about redevelopment

Blackstart has discussed expanding data center capacity on the developed campus, subject to power availability. San José Spotlight reports that the site has an existing 25-megawatt substation and preexisting data center facilities. Neither the available reporting nor the zoning vote establishes a final expansion scope or how much additional power could be secured.

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The company says it does not intend to develop the surrounding 565 acres of open space. It has also described possible approaches including closed-loop cooling, battery safety systems, noise mitigation and software to reduce energy use during peak demand. These are company-stated intentions and goals; reporting does not establish that the measures are installed, independently assessed or approved.

Rezoning is not approval for a data center project

On August 18, 2026, San Jose’s City Council voted 9–2 to rezone the 35-acre developed campus for industrial park use, according to San José Spotlight’s account of the vote. The change establishes a land-use framework; it is not, by itself, approval of a particular data center, construction plan or utility expansion.

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San José Spotlight reported that Blackstart had asked the City to complete an environmental review associated with the rezoning, but a Planning Department spokesperson said no further application for the property had been filed at the time of the report. The City said the appropriate environmental review for a later application would depend on the application materials and any prepared scope of work. A Blackstart spokesperson said future development proposals would undergo appropriate review under the California Environmental Quality Act and a public process with the City, residents and conservation groups. Those statements do not mean project-level environmental review is complete.

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Why residents and environmental advocates have raised concerns

Residents and environmental advocates objected to the rezoning while project plans and citywide data center standards remained unsettled. Their concerns relate to possible impacts if data center redevelopment proceeds, rather than findings from a completed, site-specific environmental assessment.

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  • Wildlife and open space: Advocates have pointed to nearby serpentine grassland, rare native plants, habitat relevant to the threatened Bay checkerspot butterfly and the site’s role as a wildlife corridor. They have also raised concern about whether the open-space commitment will be maintained.
  • Emissions: Advocates have cited potential emissions, including nitrogen oxides from diesel backup generators. The reporting does not establish what generator equipment a future project would use or its emissions.
  • Effects on nearby areas: Potential noise, nighttime lighting, traffic and increased human activity have also been raised as concerns. The scale of any such effects depends on a project that has not yet been described in a filed application.

The campus’s research legacy

The Almaden site opened in 1986. Data Center Dynamics associates research there with an early inkjet printer prototype, the first hard-disk drive, the relational database, DVD and Blu-ray encryption, and IBM’s TrueNorth brain-inspired neurosynaptic chip. Those historical claims are reported by Data Center Dynamics.

A Blackstart spokesperson, quoted by San José Spotlight and Data Center Dynamics, said: “For decades, researchers on this hilltop did work that helped make Silicon Valley what it is today,” and described the company’s first goal as putting the campus back to work in a way that honors its legacy.

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What to watch next

The central unanswered questions are whether the acquisition closes as expected, what redevelopment Blackstart ultimately proposes, whether power is available for any expansion, and what environmental review finds. The available reports establish the rezoning and an agreement to acquire the campus, but not a final project, completed sale or completed project-level review.

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Blackstart Digitaldata centersIBM Almaden Research CenterSan JoseSilicon Valley

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