Line rimmed baking sheet with foil. Place wire cooling rack on top. Evenly layer bacon strips on a wire rack. Bake for 15-20 minutes or until bacon begins to crisp.
While bacon is cooking, thoroughly wash potatoes and cut them into 1-inch cubes.
Soak potato cubes in cold water until bacon is done cooking.
Remove bacon from the oven and increase the temperature to 425 degrees F.
Drain, rinse, and pat potatoes dry.
Toss potatoes with olive oil, salt, and pepper. Transfer to a rimmed baking sheet that has been generously coated with oil.
Bake 45-50 minutes or until golden brown. Flip potatoes 2-3 times throughout baking time.
While potatoes are cooking, roughly chop bacon.
Once potatoes are golden brown remove from the oven, and top with bacon and jalapeno. Bake 5 minutes.