I love paying attention to tech news and then applying it back to sports.
And one of the core trends has left me with the conclusion that…
The most valuable sports assets of the next decade may be invisible from the field of play.
This is an opportunity in itself (but also ties back to sports tech and what many of you are building).
Let’s Dive In 👇
What’s Happening?
AI is fueling one of the biggest infrastructure booms in modern history.
Massive data centers are being built to meet the computing demands of large language models, generative video, and real-time analytics.
And interestingly…
Sports is becoming a direct beneficiary (and participant) in this global data-center arms race.
But first, let’s look at what data centers actually are and the broader macro ecosystem as a whole.
History + Explanation of Data Centers
Today, there are multiple types of data centers:
- Enterprise (on-premises) data centers
- Managed data centers and colocation facilities
- Public cloud data centers and hyperscale data centers
Data centers date back to the 1940s, when they were used exclusively for the military.
In the 1990s, microcomputers came on the scene, drastically reducing the amount of space needed for IT operations (going from servers to data centers).
The advent of cloud computing in the early 2000s enabled organizations to access computing resources on demand over the internet (pay-per-use pricing emerged).
In 2006, Google launched the first hyperscale data center.
And the space hasn’t looked back since…
Some key news/data that I recently came across:
- Microsoft to spend $4 billion on a second Wisconsin data center.
- Nvidia is investing $100 billion in OpenAI to help build advanced data centers.
- Data centers already account for ~4% of U.S. electricity use and could double by 2030, according to IEA/JLL reports.
- The data center market is expected to grow from ~$406 billion in 2024 to around $939 billion by 2028, with ~84% of this growth attributed to AI servers.
Data centers are becoming as crucial to the modern economy as airports and nuclear energy.
The Sports-Real-Estate Play
I’m sure we’ve all seen what’s taking place with these mixed-use sports districts (stadiums surrounded by hotels, restaurants, apartments, & eatertainment venues).
Here were his main reasons why:
- Stadiums already require high-voltage power, redundant fiber, and 24/7 operations, exactly what data centers need.
- On-site compute supports real-time betting, AR overlays, esports competitions, and advanced video analytics for surrounding bars and attractions.
- Developers can lease GPU capacity to cloud providers while selling or reusing waste heat to warm hotels and retail spaces.
- Cities often offer tax breaks for both sports developments and data centers; combining them can unlock layered incentives.
There’s already a ton of these entertainment districts in the works: Battery Atlanta (Braves), Texas Live! (Rangers), L.A. Live (Lakers/Kings), Titletown (Packers).
And what do they all need?
- Fiber backbones for ticketing, Wi-Fi, and live streaming.
- Security and permitting frameworks for large-scale infrastructure.
- High-capacity power feeds (for lighting, broadcast, HVAC, and concerts).
Those are the same ingredients a data center needs.
There are definitely some hurdles to overcome…expensive, regulatory/permitting, running costs such as electricity or cooling.
However, it will also lead to some other opportunities.
Emerging Opportunities
*via the Profluence member (he wanted to remain anonymous for now as he’s working on a big project in this space)
1. Adjacent Data Centers
SoFi Stadium is already deploying a modular edge data center right next to their stadium for:
- Massive Wi-Fi loads
- Low-latency betting feeds
- Augmented-reality overlays
Stabilized data centers typically trade at cap rates 100–150 bps lower than standard sports real estate, creating higher exit valuations for developers.
“Edge Data Centers” will be a part of all new sports venues going forward.
2. Middleware for Sensor Fusion
Sports analytics already generates terabytes of sensor/video data every game:
- biomechanics
- motion capture
- spatial tracking
- injury-prediction models
Teams in the most popular leagues already run GPU-heavy ML models, but platforms that combine different angles of these needs will be adopted.
3. Green Heat Partnerships
The Paris 2024 Olympics opened many eyes in the industry, as Equinix diverted 6.6 MW of waste heat from its PA10 data center to warm the Olympic Aquatics Centre, cutting ~1,800 tons of CO₂.
Expect similar partnerships going forward as sports facilities pursue carbon-neutral credentials, and selling/re-routing waste heat to nearby arenas or district heating systems becomes more viable.
There are other technologies that can stem from this and go beyond sports, but for simplicity’s sake, I’ll leave it at this.
4. AI-Driven Broadcast Automation
Cloud tools that cut production costs for mid-tier leagues and youth sports while enabling personalized streams is another opportunity.
Top leagues/companies have already built in this space, but not a lot of it has gone downstream yet (at least not successfully).
Probably not a billion-dollar idea, but could be a good business around it.
Looking Ahead
I’m bullish on the infrastructure around sports.
Whether that’s data centers or other technologies helping push forward the industry.
I’m going to continue studying this space and sharing my learnings with you, but I would take a look for yourself to see if there are any opportunities around data centers.
There is an insane amount of capital going into new data center projects and also sports infrastructure – many of you could benefit from that intersection.
Keep building and feel free to float over any ideas to the Profluence feed or share any other learnings/thoughts you have from this space.
