University History. San Diego State University is the oldest and largest higher education institution in San Diego. Since its founding in 1897, the university has grown to become a leading public research university.ounded March 13, 1897, San Diego State University began as the San Diego Normal School, a training facility for elementary school teachers. Seven faculty and 91 students met in temporary quarters over a downtown drugstore before moving to a newly constructed 17-acre campus on Park Boulevard.