Tech Company Strikes Deal To Buy Former IBM Campus In San Jose Hills
Source: The Mercury News, George Avalos
Photo: The former IBM Almaden Research Center at 650 Harry Road in San Jose, seen on Sept. 16, 2026 (Nhat V. Meyer/Bay Area News Group)
An affiliate of Blackstart Digital is looking to put the former IBM campus in San Jose “back to work” after striking a deal to purchase the multi-building property, the company told this news organization.
The affiliate is expected to complete the purchase of the campus at 650 Harry Road before the end of the year, according to Blackstart Digital, whose managing partner is tech entrepreneur Chadwick Manning. The company’s work includes transforming existing older sites into modern tech hubs.
“For decades, researchers on this hilltop did work that helped make Silicon Valley what it is today,” Blackstart Digital said. “Our first goal is simply to put this campus back to work in a way that honors its legacy.”
The San Jose City Council in August voted 9-2 to rezone two sections of the campus, despite opposition from residents who demanded municipal leaders scrutinize plans for the property more rigorously.
With the vote, the property was rezoned as an “industrial park zoning district” and the surrounding empty land was designated an “open space zoning district.”
“The campus has seven buildings containing more than 500,000 square feet within its 35-acre industrial-park area, buffered by 500-plus acres of open space we do not intend to develop,” Blackstart Digital stated. “We have no intention or plan to develop the surrounding open space. Our team has local roots, and we know how much the trails and hillsides matter to this community.”
The property became available after IBM decided to close the research hub, shift workers to its Silicon Valley Lab at 555 Bailey Road on the edges of Coyote Valley in San Jose, and put the Almaden property on the market. Cushman & Wakefield, a commercial real estate firm, has been marketing the site.
“There have been a number of conversations regarding this property around the future use,” San Jose Planning Director Christopher Burton told the City Council during the Aug. 18 council meeting. “We’ve had a number of different groups that have inquired about different types of uses on this site.”
City officials during the meeting attempted to assure the public that the council’s rezoning vote alone didn’t suffice to approve a specific permit or permits for business activities or redevelopment at the site.
However, Bob Staedler, principal executive with Silicon Valley Synergy, criticized the city’s transparency with San Jose residents.
“The level of disconnect between what was presented during the rezoning process and what we are learning now is reprehensible,” Staedler said. “Before anyone asks the public to trust the next review process, the city needs to explain how this happened and who knew what and when.”
Staedler was quick to note he isn’t opposed to a reuse of an underutilized property.
“In fact, putting the existing IBM campus back to productive use makes sense,” Staedler said. “But the public and the council deserved an honest description of what was actually being contemplated.”
Documents filed on June 2 with San Jose planners show Blackstart Digital filed for an environment review for the 650 Harry campus site with July 2028 as the target timeframe for a hearing date and possible decision.
Blackstart Digital envisions several citywide benefits, including construction jobs for renovation work and long-term skilled positions in research and incubator centers. A functioning research center also could generate business for local shops, restaurants, hotels and service providers, as well as produce additional tax revenue for the city.
Blackstart Digital said the tech hub could accommodate an array of future uses, including advanced research and development, startup incubators and academic partnerships, and quantum computing.
“It is uniquely and beautifully designed, and we plan to keep the existing buildings in their current form,” Blackstart Digital stated.
The campus currently contains multiple generations of existing data center facilities. A 25-megawatt power station installed by IBM already exists on the site.
“We intend to expand capacity, subject to power availability,” Blackstart Digital stated.
The company said the campus can be sustainable and green, with closed-loop cooling and advanced battery safety systems. Blackstart Digital aims to use “smart-grid software” that can shave energy use at peak demand times.
Any specific proposals would undergo a full review, as appropriate, under the state’s Environmental Quality Act rules, or CEQA, the company said.
“As ideas take shape, we will work through a full public process with the city of San Jose, neighbors, community leaders, conservation groups and open-space organizations,” Blackstart Digital stated.