How the Olympics helped transform Salt Lake City into a tech hub

This story is part of CNBC's quarterly Cities of Success series, which examines cities that have been transformed into business hubs with an entrepreneurial spirit that has attracted capital, companies and workers.

Salt Lake City has grown from a winter sports destination 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 entrepreneurship, venture capital and a thriving workforce. According to the Census Bureau, wages have increased by 51% and the population has increased by 10% over the past decade.

Former Utah Governor 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 great economic growth needs such a catalyst,” Leavitt told CNBC for the upcoming special “Cities of Success: Salt Lake City,” premiering Tuesday at 10 p.m. ET.

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 are very important,” Leavitt said. “But it's what happens in the seven or eight years beforehand – and what happens in the 10 years afterwards – that ultimately makes the Games a valuable experience, both economically and culturally.”

The 2002 Games used ten facilities, all of which continue to serve the community and attract major events, including the Olympic Oval, a premier skating venue that is still used by aspiring Olympians today.

The multimillion-dollar facility is said to have the “fastest ice in the world,” according to athletes who have broken records on it.

Experts say the high altitude – more than 4,000 feet above sea level – reduces air resistance, which can 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 residents and visitors alike.

“It's a lot like a party at your house — there's a lot going on with that deadline,” Leavitt told CNBC. “We competed with the world and realized we can win.”

The 2002 Olympic Games in Salt Lake City cost approximately $2 billion and made a profit. The University of Utah's Kem C. Gardner Policy Institute reports that the state's allocation for the Games resulted in a $164 million surplus, of which $59 million was returned to taxpayers.

According to the Gardner Institute, in the fifteen years after the Games, skier visits to Utah increased 43%, hotel and lodging revenues grew 70%, and visitor spending increased 66%.

“[The early 90s] was at a time when technology was just beginning to emerge,” Leavitt said. “Up until that point, Utah had been both an agricultural base and a defense base, but there was an ambition on our part to become a technology capital.”

During preparations for the Olympics, Leavitt met with Adobe co-founder and Salt Lake City native John Warnock in Silicon Valley to talk about 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.”

Following Warnock's advice, Leavitt and the state of Utah launched the Engineering and Computer Science Initiative in 2001. The program aimed to improve higher education in these areas by expanding faculties and programs, ultimately doubling the number of engineering and computer science graduates in twenty years with a cumulative investment of $40.1 million.

With government funding, colleges and universities rose to the challenge by tailoring programs to student interests and business demands. Since then, public and private investments have continued to grow, driven by the increasing need for technical personnel in the region.

Years later, Adobe acquired Utah-based Omniture for $1.8 billion, indicating Utah's ability to build competitive technology companies, Leavitt said.

“It was the combination of having a clear vision, dramatically increasing the number of engineers we trained, and having the Olympics and a place they wanted to live,” Leavitt said. “That all came together in what has become one of the most robust economies in the country in terms of technology.”

With the 2034 Winter Games returning to Salt Lake City, Utah plans to build on existing infrastructure with an estimated $31 million in upgrades – a modest cost compared to the $286.7 million spent in 2002.

The state expects the upcoming Games will generate $6.6 billion in economic activity, create 42,000 job-years of employment – ​​the equivalent of 4,200 full-time jobs over ten years – and add nearly $3.9 billion to Utah's economy, bringing the role of the Olympics in Utah's economy will be solidified. thriving technology landscape.

“We now have advantages that we didn't have,” Leavitt said. “We have all the infrastructure there is, and we have a reputation. The Games will go well in 2034. There is no doubt about that.”

Disclosure: CNBC parent company NBCUniversal owns NBC Sports and NBC Olympics. NBC Olympics is the U.S. broadcast rights holder for all summer and winter games through 2032.