SpaceX is set to acquire 130,000 acres of marshland in southern Louisiana

SpaceX and the state of Louisiana are close to finalizing a deal for the launch company to acquire about 130,000 acres along the northern coast of the Gulf of Mexico.

There have been persistent rumors about such an agreement for months, but now The Times-Picayune | The New Orleans Advocate reports that Louisiana Gov. Jeff Landry is expected to announce the agreement later this month.

The deal would give SpaceX control of an 18-mile stretch of marshland southwest of Lafayette. The site, known as Pecan Island, became available as part of a legal settlement that resolves dozens of lawsuits that blame ExxonMobil for pollution and coastal land loss, the newspaper reports.

No Louisiana officials publicly commented on the deal. Nor did SpaceX. In May, however, the company said in response to rumors about the Louisiana site on X, “It’s no secret that we intend to launch Starship a lot, targeting thousands of flights per year. That cadence will require the ability to launch from many different locations, so we are constantly exploring to find viable sites to expand Starship operations in the future, both domestically and internationally.”

Plenty of incentives

Adding fuel to the rumors was the passage of bills by the Louisiana Legislature earlier this year that included a package of incentives for aerospace companies, including liability protections and property tax breaks.

According to the Louisiana newspaper, the agreement with SpaceX will include provisions for coastal restoration and preservation of the sensitive marshland along the northern Gulf Coast, which is important for wildlife and also acts as a buffer for hurricanes that regularly impact the region.

So why would SpaceX be interested in a remote, marshy location in southern Louisiana?

Lots of reasons to like Louisiana

If the company is to fulfill its ambitions to launch thousands of Starship rockets a year to build a massive constellation of orbital data centers, among other purposes, it needs more launch sites. And there are limited expanses of undeveloped coastal locations along the Gulf of Mexico and southern Atlantic Ocean in the United States.