When Elon Musk’s SpaceX signed a deal with the Bahamas to allow its Falcon 9 rockets to land in Bahamian waters, the agreement was hailed as a major leap in Caribbean space collaboration. But just months later, the arrangement has hit turbulence, exposing tensions, secrecy, and rising fears over sovereignty and environmental safety.
The deal, signed in February 2024 by Deputy Prime Minister Chester Cooper, reportedly included sweeteners like complimentary Starlink internet terminals for the Bahamian military and a $1 million donation to the University of the Bahamas. In return, SpaceX was allowed to use Bahamian territory for rocket booster landings, enabling heavier launches and more efficient satellite deployments.
However, key government ministers were left out of the loop, sparking internal political frustration. Though no laws appear to have been broken, sources familiar with the deal say the fast-tracked approval has led to growing mistrust within the Bahamian government.
In April 2025, two months after the first Falcon 9 booster landed off the coast of Exuma, the Bahamas abruptly put the agreement on hold. Officially, the move was a precaution following the explosive failure of a different SpaceX rocket—Starship—whose debris washed up across several Bahamian islands after a March 6 test flight. But government insiders say the sudden halt also stemmed from backlash over being blindsided and fears of being unprepared to deal with future incidents.
Although no toxic materials were detected in the debris and no major environmental harm was reported, the event triggered deep concerns. Bahamian officials have begun reevaluating their regulatory framework, examining SpaceX’s environmental impact report, and pushing for amendments to the nation’s space reentry laws to ensure better oversight.
SpaceX’s presence in the Bahamas has become a divisive issue. While the agreement includes quarterly educational seminars and fees of $100,000 per rocket landing, many residents are worried about the long-term consequences. “I don’t strongly oppose space exploration,” said Arana Pyfrom of the Department of Environmental Planning and Protection. “But I do worry about the sovereignty of our airspace and the safety of our people.”
Local environmentalists like Joe Darville of Save The Bays have criticized the secretive nature of the agreement and the lack of public consultation, especially as Bahamian marine ecosystems are already under threat from pollution and climate change.
The March Starship failure wasn’t the first. In January, another test rocket exploded mid-flight, raining debris over the Turks and Caicos Islands. Most recently, Mexican President Claudia Sheinbaum has suggested legal action against SpaceX over debris fallout in Mexico from test launches at the company’s Texas-based Starbase facility, just north of the border.
SpaceX quickly deployed recovery teams to the Bahamas following the explosion, including helicopters, sonar-equipped boats, and senior officials like Kiko Dontchev, the company’s VP of launch. Crews gathered wreckage and reassured locals that Starship and Falcon 9 rockets operate under different protocols. Still, unease lingers.
The experience has laid bare the geopolitical and environmental risks of SpaceX’s global ambitions. Musk’s Starlink program, a key part of SpaceX’s funding strategy for future Mars missions, is being used as a bargaining chip in negotiations around the world—even as critics question the costs to national sovereignty and safety.
Despite the controversy, two Bahamian officials said Falcon 9 landings could resume later this summer, pending reviews and revisions to regulatory policies. But the episode offers a cautionary tale about the complex intersection of cutting-edge space technology and small-nation diplomacy.