Blackstart Digital to Acquire Former IBM Research Campus in South San Jose
Blackstart Digital has agreed to acquire the former IBM Almaden Research Center in South San Jose and plans to redevelop the 35-acre campus, potentially expanding its existing data center capacity. The San Jose City Council recently rezoned the property, drawing opposition from residents and environmental groups concerned about impacts to nearby open space, wildlife habitat, noise, emissions and environmental review.
Blackstart Digital, a data center development and investment firm, has agreed to acquire the former IBM Almaden Research Center on Harry Road in South San Jose. The transaction is expected to close by the end of the year, and the company says it intends to reuse the seven-building, 500,000-square-foot campus while leaving the surrounding 565 acres of open space undeveloped. Blackstart said potential redevelopment could include expanded digital infrastructure, closed-loop cooling, battery safety systems, noise mitigation and measures to reduce electricity use during peak demand.
The San Jose City Council rezoned the property in August, and Blackstart asked the city to complete the environmental review associated with the rezoning. Planning Department spokesperson Marika Krause said no development application has yet been filed, meaning future proposals would undergo additional review and public consideration. Residents and environmental groups, including Green Foothills, the Sierra Club, the California Native Plant Society and Mothers Out Front, have raised concerns about data center emissions, backup generators, noise, lighting and potential harm to serpentine grasslands, rare plants and habitat for the threatened Bay checkerspot butterfly.