Blackstart Digital Will Purchase San Jose IBM Campus
The firm plans to acquire the 650 Harry Road site to develop a modern technology hub by the end of 2026.
Updated on Sept. 29, 2026 in Data Centers
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Blackstart Digital has agreed to purchase the former IBM campus located at 650 Harry Road in San Jose. The firm aims to transform the facility into a modern tech hub, with the deal expected to close before the end of the year.
Why it matters
This acquisition represents a strategic shift toward repurposing legacy industrial properties into modernized technology infrastructure. The company plans to leverage existing site utilities to support high-demand digital operations.
The property at 650 Harry Road spans 500,000 square feet of building space across a 35-acre industrial park. The site currently includes a 25-megawatt power station and is surrounded by more than 500 acres of open space.
The players
Blackstart Digital
This technology firm specializes in redeveloping older industrial and corporate sites into modern infrastructure hubs.
San Jose City Council
This local government body manages zoning and development regulations for the city of San Jose.
The details
Blackstart Digital intends to utilize smart-grid software to manage energy consumption during peak periods as part of its site conversion strategy. Future development plans for the campus will undergo a mandatory review process under state Environmental Quality Act rules.
Timeline
The San Jose City Council rezoned the campus in August 2026.
The purchase of the property is scheduled to be completed before the end of the year.
The Tech Race
This acquisition fits into the broader industry trend of converting legacy tech campuses into energy-efficient data centers to meet surging computational demand. It reflects a strategic effort to utilize existing utility infrastructure as firms compete to expand their digital footprints.
Local residents may see changes in traffic or industrial activity near Harry Road as the site transitions from its former status. The use of smart-grid management software aims to minimize the project's impact on the local power supply during peak usage hours.
The takeaway
Repurposing existing industrial footprints offers a sustainable path for tech expansion by minimizing new land disturbance. Implementing smart-grid technology allows firms to balance modern high-intensity operations with local energy grid constraints.
Further reading
For more information on infrastructure development in the region, visit the Data Centers section.
Source note: This article includes information reported by San Jose Mercury News.
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