Former IBM research campus in San Jose, California, is being acquired by data center developer Blackstart Digital. According to Mercury News, Blackstart has agreed to acquire the former IBM Almaden...

Data Center Firm Set to Acquire Former IBM Research Campus in Silicon Valley

Abdul-Rahman Oladimeji

Abdul-Rahman Oladimeji

October 06, 2026

Former IBM research campus in San Jose, California, is being acquired by data center developer Blackstart Digital. According to Mercury News, Blackstart has agreed to acquire the former IBM Almaden Research Center at 650 Harry Road, with financial terms undisclosed. The deal could close before the end of the year, and Blackstart has reportedly filed for an environmental review related to planned renovations.

“For decades, researchers on this hilltop did work that helped make Silicon Valley what it is today,” Blackstart Digital told the publication. “Our first goal is simply to put this campus back to work in a way that honors its legacy.”

The campus spans seven buildings across 35 acres, with more than 500,000 sq ft (46,450 sqm) of space. It already includes some data center capacity and is served by a 25MW substation that Blackstart plans to expand. Blackstart said more than 500 acres of open space will remain undeveloped. In August, the San Jose City Council rezoned the campus as an “industrial park zoning district,” potentially allowing data center development. City officials said several real estate executives had discussed development opportunities with planners, while the Sierra Club opposed the rezoning over data center concerns.

LinkedIn lists executives with backgrounds at Digital Realty, Deutsche Telekom, and other companies linked to Manning. Element Critical/Evocative founder and Foundation DC CEO Arman Khalili is also listed as a partner. IBM put the Almaden campus on the market after relocating staff to its Silicon Valley Lab at 555 Bailey Road in San Jose last year. Opened in 1986, the site produced several major innovations, including the first hard-disk drive, relational database, inkjet printer prototype, and DVD and Blu-ray encryption. IBM also developed its TrueNorth brain-inspired chip there.ibm_san_jose.width-358.webp


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