The Future of the Former IBM Almaden Site: What South San Jose Neighbors Need to Know

LOCAL EXPERT SUMMARY: The recent rezoning of the iconic IBM Almaden Research Center at 650 Harry Road is a major milestone for South San Jose and Almaden Valley. As a 20+ year Santa Clara County real estate expert, I am breaking down what this transition from research lab to potential data center means for our hillsides, our community, and your property values.

Key Takeaways for San Jose Readers:

• Zoning Changes: On August 18, 2026, the San Jose City Council split the property's zoning, designating 35 acres as Industrial Park and over 650 acres as Open Space.

• New Ownership: Data center developer Blackstart Digital is expected to close on the property by the end of 2026.

• Hillside Protection: While zoned Open Space, community advocates are still pushing for a recorded conservation easement to ensure permanent environmental protection for the trails and hillsides.

For decades, the IBM Almaden Research Center at 650 Harry Road has been a quiet fixture in the South San Jose landscape. Historically, this facility was one of the world's premier corporate laboratories, globally celebrated for inventing the first commercial inkjet printer and fundamental advancements in magnetic hard disk drives. But things are shifting. The 687-acre property was listed for sale after IBM consolidated its workforce to the Silicon Valley Lab on Bailey Road.

In my 20+ years of representing families in Silicon Valley, I’ve learned that whenever major commercial transitions happen, homeowners immediately worry about property values, traffic, and neighborhood character. I firmly believe in giving it to you straight—no fluff, just the facts you need to know. If you listen to my podcast, Say What You Want About Real Estate, you know I prefer candid advocacy over corporate spin. So, let's look at exactly what happened at City Hall this year and what to watch for next.

What Happened with the 2026 Rezoning of 650 Harry Road?

On August 18, 2026, the San Jose City Council voted 9-2 to approve the rezoning of the former IBM Almaden Research Center. This action officially split the property's zoning: the roughly 35-acre building pad is now designated as Industrial Park, while the remaining hundreds of acres of surrounding hillsides are zoned as Open Space.

An affiliate of Blackstart Digital, a data-center development firm, has agreed to purchase the campus, with the deal expected to close before the end of 2026. The existing site features seven buildings totaling over 500,000 square feet and a 25-megawatt power station.

• The Future of the Campus: Blackstart Digital intends to expand the site's existing data center capacity, though any new data center project would still require a Special Use Permit and a full California Environmental Quality Act (CEQA) review.

• Property Value Impacts: Major commercial shifts can influence local residential demand. For a deeper look at neighborhood market dynamics, explore our Campbell vs. Willow Glen home buyer comparison or review how commercial tax assessments impact city infrastructure in our guide to Santa Clara County Proposition 13 property taxes.

Will the Almaden Hillsides Be Permanently Protected?

Preserving the natural beauty of the Almaden hillsides is a top priority for South San Jose residents. During community meetings, city leadership emphasized a commitment to limiting any development strictly to the current 35-acre industrial footprint to protect the surrounding pristine wilderness.

However, zoning is not the same as a permanent guarantee. While the 652 acres of surrounding land are currently zoned as Open Space, a recorded conservation easement has not yet been established.

• Verifying Local Regulations: Community advocates and environmental groups continue to urge the city to adopt enforceable standards. Check local building codes and zoning updates directly on the City of San Jose Planning and Building Department portal or verify land designations with the Santa Clara County Assessor's Office.

Frequently Asked Questions About the IBM Almaden Sale

Has a specific data center project been approved yet?

No specific data center has been approved as of late 2026. A data center is only permitted under the new Industrial Park zoning if the developers secure a Special Use Permit and undergo a full CEQA environmental review. If you are evaluating properties in this beautiful pocket of South San Jose, browse active listings on our Almaden Valley neighborhood guide.

Is the surrounding open space permanently protected?

The hundreds of surrounding acres are currently zoned as Open Space, but they are not permanently protected by a recorded conservation easement yet. Residents and environmental groups are actively pushing for this permanent designation. For maps and updates on local district boundaries and public lands, refer directly to the San José Unified School District portal.

Local San Jose Real Estate Expertise & Next Steps

Navigating the San Jose real estate market requires hyper-local expertise and candid advice. Whether you're buying or selling in Almaden Valley, Willow Glen, or Cambrian, I can help you strategically navigate these market shifts. Schedule a personalized strategy call with Michelle Elliott, top San Jose Realtor or search active listings on our San Jose real estate portal.