IBM San Jose research hub draws developer interest ahead of rezoning

IBM San Jose research hub draws developer interest ahead of rezoning

News ClipThe Mercury News·San Jose, Santa Clara County, CA·8/19/2026

The San Jose City Council voted 9-2 to rezone two sections of the former IBM Almaden Research Center despite significant local opposition. The rezoning designates 35.1 acres for "industrial park zoning district" and 565.1 acres for "open space zoning district", paving the way for potential redevelopment of the research center site, including possible data center use, while preserving surrounding land. Residents expressed concerns about the speed of the decision and the potential for industrial development, including data centers, in the area.

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IBM
Gov: San Jose City Council, City of San Jose, San Jose Planning Department, Open Space Authority Santa Clara Valley

The San Jose City Council has approved the rezoning of the iconic IBM Almaden Research Center and adjacent vacant land, despite strong objections from local residents. The council voted 9-2 to redesignate 35.1 acres of the former research hub at 650 Harry Road as an "industrial park zoning district" and 565.1 surrounding acres as an "open space zoning district." While the rezoning does not approve specific projects, it clears the path for potential redevelopment or repurposing of the IBM site, which IBM has decided to sell.

San Jose Planning Director Christopher Burton confirmed that multiple real estate executives have already expressed interest in the research center building, as IBM intends to dispose of the site and shift its workers. Erik Schoennauer, a land-use consultant representing an investment group, stated that the rezoning aims to preserve the open space and allow efficient economic use of the industrial site. However, over 30 residents spoke against the swift approval, citing concerns about rushing such a consequential decision and the potential for harmful industrial uses, including data centers. Dashiell Leeds, a Sierra Club conservation coordinator, specifically voiced apprehension that the "industrial park" designation could lead to data centers.

A former IBM employee also revealed that the research lab already contained a "massive data center" internally from its inception. Councilmembers Rosemary Kamei and George Casey debated the need for more public discourse, with Kamei advocating for a delay to allow greater community awareness. Mayor Matt Mahan ultimately brought the contentious meeting back to order amid boos from the audience, emphasizing the collective desire to protect the open space.