Blackstart Digital Will Purchase Former IBM San Jose Campus
The company plans to transform the 650 Harry Road industrial site into a modern tech hub by the end of 2026.
Updated on Sept. 29, 2026 in Data Centers
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Blackstart Digital has agreed to acquire the 500,000-square-foot former IBM campus at 650 Harry Road in San Jose. The purchase, expected to close by the end of this year, follows a 9-2 City Council vote in August 2026 to rezone the site for industrial and open space use.
Why it matters
This acquisition reflects a broader industry trend of repurposing aging corporate campuses into modernized technology hubs. By securing a site with significant existing power infrastructure, the firm intends to increase its footprint in a high-demand market.
The property includes a 25-megawatt power station and spans over 500,000 square feet of building space across a 35-acre industrial park. These technical assets are supported by over 500 acres of open space that now fall under new zoning designations.
The players
Blackstart Digital
A company focused on acquiring and retrofitting legacy corporate sites into modern technology and data infrastructure hubs.
San Jose City Council
The local governing body responsible for legislative decisions including the zoning and industrial development oversight of the San Jose region.
The details
The site will leverage smart-grid software, a digital management system used to optimize energy distribution, to regulate consumption during peak demand. Any future site development must undergo review under the California Environmental Quality Act, a state regulatory framework that mandates assessments of potential environmental impacts for construction projects. The facility currently utilizes a 25-megawatt station to power its operations, with future plans to increase capacity depending on local utility availability.
Timeline
August 2026: The San Jose City Council voted 9-2 to rezone the campus property.
Before the end of the year: Blackstart Digital expects to complete the purchase of the site.
The Tech Race
This acquisition follows the precedent of California Environmental Quality Act compliance, ensuring that local industrial expansions meet state-mandated environmental standards. The move tracks with current industry strategies to secure existing grid-connected facilities in competitive technology markets.
Local residents will see no immediate changes to the property until the acquisition concludes later this year. Future development activities will be subject to public review processes governed by state environmental regulations.
The takeaway
The firm is prioritizing sites with existing high-capacity power infrastructure to bypass long-term development hurdles. Watch for the official closing of the property sale by the end of 2026 to signal the start of site modernization efforts.
Further reading
For more on infrastructure trends, visit our Data Centers section.
Source note: This article includes information reported by San Jose Mercury News.
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