Long known as the heart of the Permian Basin oil industry, Midland is positioning itself as a future hub for the commercial space sector as local leaders pursue new aerospace investments, manufacturing projects and rocket launch capabilities.

City officials, economic development leaders and aerospace industry representatives gathered this week to discuss Midland’s role in Texas’ rapidly expanding space economy, highlighting efforts to diversify the region’s economy beyond oil and gas.

At the center of those efforts is the Midland International Air & Space Port, one of the few FAA-approved commercial spaceports in the United States. Local officials say the facility’s expansive airspace, existing infrastructure and engineering workforce make it an attractive location for aerospace companies seeking manufacturing, testing and launch operations.

The city recently received a $5 million grant from the Texas Space Commission to support development of a planned vertical rocket launch site. Officials say the project could become one of the first commercially accessible vertical launch facilities in the country outside of government-operated launch centers.

Supporters argue the project would allow Midland to attract rocket companies, satellite manufacturers and aerospace contractors looking for additional launch capacity as demand across the industry grows.

“The goal is to create an ecosystem that supports the full aerospace supply chain,” local economic development officials said during discussions about the project.

Several aerospace companies have already established operations in Midland. AST SpaceMobile, a satellite communications company, has expanded its manufacturing presence in the city and plans to continue producing satellites in West Texas. Aerospace company Starfighters Space has also established facilities at the spaceport, supporting research and testing operations.

The initiative comes as Texas continues to strengthen its position as a national leader in the commercial space industry. The state is already home to major aerospace facilities, including SpaceX’s launch operations in South Texas, Blue Origin’s testing facilities in West Texas and NASA’s Johnson Space Center in Houston.

Rather than competing directly with those operations, Midland leaders envision the city serving as a complementary center for aerospace manufacturing, testing and commercial launch activities.

Economic development officials say the strategy is designed to reduce the region’s dependence on fluctuations in the oil market while creating new opportunities in a high-growth industry. Industry forecasts estimate the global space economy could reach $1.8 trillion by 2035, driven by satellite communications, commercial launch services, defense contracts and emerging space technologies.

Local leaders believe Midland’s existing workforce, developed through decades of energy production and industrial operations, could provide a strong foundation for aerospace growth.

If development plans move forward as expected, officials estimate the region’s space sector could create hundreds of additional jobs over the coming years while attracting new private investment to West Texas.

For Midland, the effort represents one of the most ambitious economic diversification projects in the city’s history — a bid to leverage its industrial expertise and infrastructure to secure a place in the next generation of Texas economic growth.