Spectators file into the Olympic Medal Plaza in downtown Salt Lake City, Utah, during the 2002 Olympics. Buildings are draped with Olympic athletic figures, and the Olympic rings glow on the mountainside above the city, Feb. 16, 2002.
AFP Photo/George Frey via Getty Images
This story is part of CNBC’s quarterly Cities of Success series, which explores cities that have transformed into business hubs with an entrepreneurial spirit that has attracted capital, companies and employees.
Salt Lake City has grown from a winter sports venue to a vibrant technology hub in just two decades, leveraging the legacy of the 2002 Winter Olympics to transform into one of America’s fastest-growing business destinations.
Known as part of Utah’s “Silicon Slopes,” the city has become a magnet for entrepreneurial spirit, venture capital and a flourishing workforce. Over the past decade, wages have risen by 51%, and the population has increased by 10%, according to the Census Bureau.
Former Utah Gov. Michael Leavitt credits the Olympics with spurring major infrastructure projects in Salt Lake City, attracting technology talent and establishing an economic legacy that continues to shape the region’s identity.
“The Games were a great catalyst. And big economic growth needs a catalyst like that,” Leavitt told CNBC for the upcoming “Cities of Success: Salt Lake City” special, premiering Tuesday at 10 p.m. ET.
A catalyst for economic growth
In 2002, the world watched as Salt Lake City welcomed athletes and spectators to the Winter Olympics. But for Leavitt, who served as governor from 1993 to 2003, the Games meant much more than 17 days of sporting excitement.
“The 17 days of the Games is very important,” Leavitt said. “But it’s what happens in the seven or eight years in advance — and what happens in the 10 years after — that ultimately makes the Games a worthwhile experience, both economically and culturally.”
The 2002 Games utilized 10 facilities, all of which continue to serve the community and attract major events, including the Olympic Oval, a premier speed skating venue still used by aspiring Olympians today.
The Olympic Oval speed skating facility in Kearns, Utah, near Salt Lake City. The facility is home to world-class speed skating events.
CNBC
The multimillion-dollar facility is said to have the “fastest ice on Earth” by athletes who have broken records on it.
Experts say the high altitude — more than 4,600 feet above sea level — reduces air resistance, which may help give skaters an edge when it comes to speed.
In preparation for the Games, Leavitt said, Utah invested in infrastructure improvements, including light rail and major highways, creating lasting benefits for both residents and visitors.
“It’s a lot like having a party at your house — a lot gets done with that deadline,” Leavitt told CNBC. “We competed with the world and realized we can win.”
Salt Lake City’s 2002 Olympics cost about $2 billion and turned a profit. The University of Utah’s Kem C. Gardner Policy Institute reports the state’s allocation for the Games resulted in a $164 million surplus, with $59 million returned to taxpayers.
In the 15 years following the Games, skier visits to Utah increased by 43%, hotel and lodging revenue grew by 70%, and visitor spending soared by 66%, according to the Gardner Institute.
From Olympic host to thriving tech hub
USA’s Todd Lodwick climbs the hill in front of the Olympic Rings during the start in the Men’s Nordic Combined team relay at Soldier Hollow, near Salt Lake City, Utah, Feb. 17, 2002.
Photo by Anacleto Rapping/Los Angeles Times via Getty Images
“[The early 90s] was at a time when technology was just beginning to emerge,” Leavitt said. “Up until that point, Utah had been both agriculturally based as well as defense — but there was an ambition on our part to become a tech capital.”
During preparations for the Olympics, Leavitt met with Adobe co-founder and Salt Lake City native John Warnock in Silicon Valley to discuss building a tech community in Utah.
Leavitt recalled a comment Warnock made to him: “If you want [me] to come to Utah, I need engineers.”
Acting on Warnock’s advice, in 2001, Leavitt and the state of Utah launched the Engineering and Computer Science Initiative. The program aimed to improve higher education in these fields by expanding faculty and programs, ultimately doubling the number of engineering and computer science graduates over two decades with a cumulative $40.1 million investment.
With state funding, colleges and universities rose to the challenge, aligning programs with student interests and industry demands. Since then, public and private investments have continued to grow, driven by the region’s increasing need for tech workers.
Adobe years later acquired Utah-based Omniture for $1.8 billion, signaling Utah’s capacity to build competitive tech enterprises, Leavitt said.
“It was the combination of a clear vision, dramatically ratcheting up the number of engineers we were educating, and having the Olympics and a place they wanted to live,” Leavitt said. “All of that came together into what’s become one of the most robust economies in the country around technology.”
Looking ahead to 2034
With the 2034 Winter Games set to return to Salt Lake City, Utah aims to build on its existing infrastructure with an estimated $31 million in upgrades — a modest cost compared with the $286.7 million spent in 2002.
The state expects the upcoming Games to generate $6.6 billion in economic activity, create 42,000 job-years of employment — the equivalent of 4,200 full-time jobs for 10 years — and add nearly $3.9 billion to Utah’s economy, solidifying the Olympics’ role in Utah’s flourishing tech landscape.
“We now have advantages we didn’t have,” Leavitt said. “We have all of the infrastructure that’s there, and we have a reputation. The Games will be done well in 2034. There’s just no question about it.”
Disclosure: CNBC parent NBCUniversal owns NBC Sports and NBC Olympics. NBC Olympics is the U.S. broadcast rights holder to all Summer and Winter Games through 2032.
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