New data center developer Blackstart Digital has acquired the former IBM Almaden Research Center at 650 Harry Road in San Jose, California, a seven-building campus spanning 35 acres and more than 500,000 square feet. Terms of the deal were not disclosed, though the transaction could close before the end of the year and Blackstart has already filed for an environmental review for renovations. The site hosts existing data center space and a 25 MW substation that Blackstart plans to expand; more than 500 acres of adjacent open space will remain undeveloped. The San Jose City Council voted in August to rezone the campus as an industrial park zoning district, a move the Sierra Club opposed due to data center development concerns.
The acquisition converts a historically significant research campus into new digital infrastructure in a market where large, power-served sites are scarce, demonstrating how former industrial and corporate campuses are being repurposed to meet data center demand in constrained urban markets. The rezoning battle and Sierra Club opposition also reflect the local land-use tensions that accompany data center conversions in established communities.
The acquisition of a former IBM research campus in Silicon Valley by a data center firm signals continued repurposing of legacy tech real estate for compute infrastructure, a trend with significant market implications.