For Almaden Valley and South San Jose residents, the future of the former IBM Almaden Research Center raises questions that reach beyond a change in ownership. How might the campus be reused? What happens to the surrounding hillsides? And what should nearby homeowners watch next?
Recent developments make this a timely local story. The zoning has changed, a data-center developer has entered into an acquisition agreement, and city leaders are seeking stronger protection for surrounding open space. Those developments are at different stages, and understanding the distinctions helps put the headlines in perspective.
What changed at 650 Harry Road?
On August 18, 2026, the San Jose City Council approved a conforming rezoning for the property at 650 Harry Road. City records describe approximately 600 acres: about 35 acres designated Industrial Park and approximately 565 acres designated Open Space. The action replaced the previous planned-development zoning. [1, 2]
This is a land-use change, rather than an announcement of new homes. The distinction between the developed campus and surrounding open space is central to understanding the site’s future.
Who is planning to acquire the campus?
San José Spotlight reported October 1 that Blackstart Digital, a data-center development and investment firm, had agreed to acquire the campus, with closing expected by year-end. That report described seven buildings totaling more than 500,000 square feet. [3]
The company’s representative discussed expanding existing data-center capacity, subject to available power, and described sustainability measures it intends to pursue. These are the prospective buyer’s stated plans; they should not be read as completed improvements or final permit conditions. The reporting reviewed for this article describes an acquisition agreement, rather than confirming that the sale has closed. [3]
Has a specific redevelopment been approved?
The District 10 office’s published update states that no specific project had been proposed as of October 6. It explains that a data-center use would require relevant permits and review, including a Special Use Permit and environmental review. That dated update should not be treated as a live inventory of every subsequent filing. [2]
For residents, the next useful documents will be any project application, equipment plans, technical studies, and conditions of approval. Those materials can answer questions that a zoning designation alone cannot.
Why are the surrounding hillsides getting attention?
October 22 reporting highlighted Mayor Matt Mahan’s effort, with Councilmember George Casey, to secure permanent conservation protections for the approximately 565 acres surrounding the developed campus. A representative for Blackstart Digital said the proposed reuse would remain within the existing 35-acre developed area. [4]
Open Space zoning and a recorded conservation easement are distinct protections. The current zoning establishes allowed uses; city leaders are seeking an additional, lasting conservation commitment. The reporting reviewed here does not establish that such an easement has been completed. [2, 4]
For neighbors, a meaningful next milestone would be documentation showing exactly what land is protected, which restrictions apply, and how those protections would be enforced.
What questions should neighbors ask?
Residents and environmental advocates have raised concerns about possible noise, emissions, water and electricity demand, and effects on nearby habitat. Those are issues to examine through a specific proposal and its supporting studies, rather than established outcomes of the rezoning. [5]
Useful questions for any future application include:
- Where would cooling equipment and backup generators be located?
- What would operating noise and generator-testing schedules look like?
- What cooling system and water source would be used?
- Would new lighting, utility infrastructure, or construction access affect nearby areas?
- How would the developed footprint be limited and adjacent habitat protected?
San Jose is also developing citywide data-center standards. The District 10 update says adoption is expected in December 2026. That remains an anticipated milestone, rather than a set of final requirements already in effect. [2]
What could this mean for nearby real estate?
For buyers and sellers, this is a due-diligence topic. The information reviewed does not establish a measurable effect on nearby home values, and it would be premature to attach a price increase or decrease to the news.
A practical approach is to consider each home’s location, distance, terrain, views, and relationship to any eventual project. A homeowner several neighborhoods away may have different questions from someone whose property faces the campus or its access route.
Buyers can review current public filings alongside their usual property research. Sellers can prepare factual answers grounded in published records. Both benefit from distinguishing approved actions, developer statements, and decisions still pending.
How to stay informed
Follow the District 10 office’s updates, search San Jose’s permit records for 650 Harry Road, and watch City Council agendas for data-center standards and conservation actions. The rezoning identifiers C26-008 and ER26-088 can help locate background records. [1, 2]
The next milestones to watch are confirmation of the acquisition closing, any specific reuse application, final citywide standards, and recorded open-space protections.
Almaden’s foothill setting is part of what makes this area special. Following the actual documents as this story develops gives neighbors a clearer basis for evaluating change—and gives buyers and sellers better information for their decisions.