SpaceX’s Secret Deal with the Bahamas: Rocket Landings, Starlink Gifts, and Rising Tensions

As SpaceX negotiated a deal last year with the Bahamian government to permit Falcon 9 rocket booster landings within the country’s territorial waters, the company reportedly offered a strategic incentive: complimentary Starlink internet terminals for the Bahamas’ defense fleet. The proposal, which formed part of a broader space access agreement, highlights how Elon Musk’s aerospace firm leverages its satellite communications network to secure international operational footholds.

According to sources familiar with the matter, the agreement was quietly signed in February by Deputy Prime Minister Chester Cooper, bypassing several key cabinet consultations. Although Reuters found no evidence of legal wrongdoing, the deal's swift approval stirred discontent within the Bahamian government. The Ministry of Tourism and the Office of the Prime Minister declined to comment.

In April—just two months after a Falcon 9 successfully landed off the coast of Exuma—the Bahamas abruptly suspended the agreement, citing the need for a post-launch review. The trigger: the mid-flight explosion of SpaceX’s Starship rocket in March, which scattered debris across Bahamian islands. Although no toxic materials or significant environmental damage were reported, officials expressed growing concern about sovereignty, safety, and transparency.

“While no toxic materials were detected and no significant environmental impact was reported, the incident prompted a reevaluation of our engagement with SpaceX,” said Cooper through a spokesperson.

A Glimpse into Fragile Diplomatic Terrain

The situation marks a rare public glimpse into SpaceX’s behind-the-scenes negotiations with foreign governments. As Musk's ambitions grow—ranging from global satellite internet to crewed Mars missions—SpaceX finds itself navigating the complex intersection of geopolitics, national sovereignty, and environmental risk.

The episode also underscores how Starlink, SpaceX’s satellite internet arm, serves not just as a revenue engine but also as a diplomatic asset. While the specific value of the Starlink offer to the Bahamian defense fleet remains undisclosed, the company’s multi-pronged approach included a $1 million donation to the University of the Bahamas and a $100,000 per-landing fee under newly drafted spaceflight regulations.

Environmental and Political Backlash

Concerns, however, are mounting. Arana Pyfrom, Assistant Director at the Department of Environmental Planning and Protection, called SpaceX’s presence “polarizing,” noting widespread public concern over potential pollution and the country’s sovereign airspace.

“I have no strong dislike for space exploration, but I do have concerns about the sovereignty of my nation's airspace,” Pyfrom said. “The Starship explosion just strengthened opposition to make sure we could answer all these questions.”

Local environmental activists have echoed these concerns. Joe Darville, Chairman of Save The Bays, condemned both the Starship fallout and the secrecy of the Falcon 9 landing deal.

“Something like that should never have been made without public consultation,” Darville said, citing threats to marine ecosystems and the lack of transparency.

Following the Starship explosion, SpaceX quickly deployed teams to the Ragged Island chain with helicopters and sonar equipment to recover debris—an operation that included senior executives such as VP of Launch Kiko Dontchev.

Caribbean Waters and Global Fallout

Thousands of vessels pass through Caribbean waters annually—cruise liners, cargo ships, yachts, and fishing boats—all vital to the Bahamian economy. The idea of rocket parts raining down from failed test flights presents not just an environmental threat but a logistical and economic one.

A Canadian vacationer, anchored on a sailboat near Ragged Island, described witnessing a sudden fireball in the sky:

“What I initially thought was the rising moon turned into streaking comets. I realized I could have had a huge chunk of rocket debris land on me and sink my boat.”

Meanwhile, in Mexico, similar concerns have emerged. President Claudia Sheinbaum recently warned that her government may pursue legal action against SpaceX following another Starship explosion that scattered debris across the border. Musk’s public response emphasized Mexico's reluctance to allow recovery efforts.

Despite these setbacks, Falcon 9 landings in Bahamian waters could resume as early as this summer, pending government review of SpaceX’s environmental report and an overhaul of the approval process. Proposed amendments to Bahamian space reentry laws aim to bolster environmental safeguards and introduce a more transparent multi-agency review.

SpaceX, undeterred, continues its global expansion. Starlink is already deployed in dozens of countries, and Musk has hinted that the next Starship test launch could happen within weeks.

The unfolding Bahamas story reveals not just the risks of 21st-century spaceflight, but also the growing pains of a private company learning to balance innovation with accountability—especially when operating beyond its home turf.