Arizona Bets Big on Space Economy and New Launch Frontier

Arizona’s commercial aerospace sector appears cleared for liftoff as rising investment and plans for a new spaceport fuel what could become a decade-long expansion in private space activity.

In late April, aerospace leaders gathered in Phoenix for the inaugural Arizona Space Congress to outline plans for a developing “orbital economy” and to position Arizona as a future hub in the global space industry.

Discussions focused on accelerating the state’s growing space sector by leveraging its workforce, energy capacity, and emerging technologies to shape a roadmap for industry leadership through 2030.

The aim is to build a coordinated strategy for attracting space technology companies to Arizona, according to Jim Cantrell, co-founder and CEO of Phantom Space in Tucson.

“That’s essential for this ecosystem to grow,” Cantrell told The Epoch Times on May 6. “We want to influence the thinkers in those worlds so they see there’s something here others may have missed and decide to pursue it.”

The Arizona Space Congress is expected to become an annual gathering focused on the state’s expanding role in space innovation, he said.

“We’re building rockets in Tucson,” he said. “The small satellite revolution started in Arizona.”

On Dec. 28, 2025, President Donald Trump signed an executive order, “Ensuring American Space Superiority,” aimed at strengthening U.S. security and leadership in space through commercial development.

According to the Arizona Commerce Authority, the state ranks among the top three in the United States for aerospace and defense manufacturing, supported by its land availability, dry climate, manufacturing base, and pro-business environment.

Arizona is home to 1,860 aerospace companies supporting more than 62,000 jobs and has attracted $11.8 billion in federal contracts in Fiscal Year 2016.

In the past five years, Arizona has hosted more than 60 aerospace and defense expansions, totaling more than $2.8 billion in investment and more than 12,500 jobs, according to the Arizona Commerce Authority.

Recent projects include Gulfstream, MHIRJ Aviation, Setnix, Ascent Aviation Services, Unical Aviation, and BlackStar Orbital.

Aerospace and defense continues to be one of Arizona’s fastest-growing industries, with immense opportunity ahead, Arizona Commerce Authority President and CEO Sandra Watson said in a statement.

“We’re strategically focused on aerospace and defense, working alongside our industry and ecosystem partners to enhance our competitiveness, pioneer new training programs, and plan for future growth,” Watson said.

The state’s education sector has also become a key contributor to space technology development in Arizona. Researchers at Arizona State University (ASU) and the University of Arizona have supported Mars missions and instrument development. ASU is also participating in NASA’s Artemis program, including astronaut geology training and work on next-generation lunar rover systems.

The former Orbital ATK, now part of Northrop Grumman, has produced satellites in the Phoenix area.

In Tucson, World View Enterprises is developing high-altitude balloon systems capable of carrying passengers and payloads more than 19 miles above Earth.

Over the past three decades, a steady rise in aerospace startups has helped establish Arizona as a significant center for space innovation.

Supported by a strong defense base, the region includes companies such as FreeFall Aerospace, drone maker Hydronalix, and BlackStar Orbital Technologies.

Other players include Katalyst Space Technologies, focused on modular spacecraft, and Paramium Technologies, which builds advanced ground-station antenna systems.

In 2019, Cantrell and Michael D’Angelo founded Phantom Space to mass-produce small satellite launch systems, build satellites, and develop orbital data architecture.

In February, the company acquired assets from Vector Launch to accelerate development of its products.

These include the Daytona Rocket, a two-stage vehicle designed to deliver payloads to low Earth orbit for roughly $6 million per launch.

The company is pursuing a model centered on rapid, lower-cost launches, modular satellite systems, and orbital data platforms known as Phantom Clouds.

Cantrell also serves on the board of the Arizona Space Commission, which works to expand research opportunities and support growth across the state’s aerospace and aviation sectors.

“One of the things we talk about is whether the rest of the world really understands what’s happening in Arizona,” Cantrell said. “It’s a very well-positioned state to expand its space industry. Part of the goal of the Space Congress was to make sure that message gets out.”

Before Phantom Space, Cantrell co-founded or launched several companies, including Vector, StratSpace, and Vintage Exotics Competition Engineering. He also helped found Moon Express and SpaceX, at which he served as the first vice president of business development.

His career spans roles at Skybox Imaging, York Space Systems, and PlanetIQ, as well as positions at France’s CNES and NASA’s Jet Propulsion Laboratory. He has contributed to more than 46 satellite missions, including the Iridium Next.

Cantrell described Arizona as a strong environment for business due to its relatively limited regulation and established innovation base.

The government is small, relatively speaking, he said.

“It manages its fiscal affairs well, and for the most part, politicians stay out of your way,” Cantrell said.

He said space development should remain nonpartisan.

“I don’t want to make it political because that would undermine it. It’s a national effort,” he said. “The United States needs space to maintain its liberty and freedom going forward.”

In the early era of spaceflight, only governments and agencies like NASA had the resources to pursue missions, he said. Today, private investment drives much of the industry’s expansion.

“It was a completely new industry,” Cantrell said, comparing it to the early internet, initially built for government communications needs.

Over time, commercial use cases emerged, particularly in satellite communications, demonstrating viable revenue models.

“If you built a satellite 20 years ago, you owned it and controlled it entirely,” Cantrell said.

The industry has since shifted toward shared infrastructure models, similar to cloud computing systems.

“That’s what we focused on—how to tap into an open ecosystem of innovation, talent, and financing to grow the sector,” Cantrell said.

He said the modern industry transformation was accelerated by companies such as SpaceX and Skybox Imaging, which demonstrated that private space ventures could scale.

“SpaceX was a major part of that,” Cantrell said. “Once launch costs came down, everything else became possible.”

He noted that reduced launch costs improved investor confidence and expanded business models across the sector.

The Yuma Spaceport is expected to play a role in that growth, positioning itself within Arizona’s broader aerospace ecosystem. Yuma is also competing for a National Science Foundation grant that could bring $160 million over 10 years for infrastructure development.

With the Trump administration prioritizing spaceflight and economic expansion, Arizona is “ready to play a leading role,” Arizona state Rep. Justin Wilmeth said in a joint letter supporting Yuma’s spaceport funding application alongside state Rep. Michele Peña and state Sen. Tim Dunn.

Wilmeth sponsored legislation that created the Arizona Space Commission to expand space commerce in the state.

“Yuma is the ideal location for the next spaceport, offering advantages unmatched by any coastal alternative,” Peña said in a statement.

“With optimal weather, proximity to military and defense assets, pro-business policies, a skilled workforce, and exclusive launch directionality over the Sea of Cortez, it is the smartest and most efficient choice.”

The lawmakers said a Yuma spaceport would bolster national security, spur economic growth, and advance space exploration. The Southwest Regional Aerospace Innovation Alliance estimates that the project would generate $2 billion in annual economic activity, create up to 3,000 jobs, and position Yuma as a hub for commercial launches and aerospace innovation. 

The proposal aligns with priorities in the House Republican Majority Plan.

Pending approval, the site could begin launching small satellites over the Sea of Cortez by 2028 or 2029.

Yuma, a city of 95,248 residents near the California border, is advancing Federal Aviation Administration licensing and pre-construction planning, according to Elevate Southwest. The organization stated that the project could become a key aerospace hub by combining regional infrastructure, climate conditions, and defense assets to support commercial and government launches.

Cantrell said Arizona could eventually join other major launch sites as a key player in the space launch industry.

“It’s low-hanging fruit,” Cantrell said. “So it would be great for Arizona. I’m not going to predict how much rate we can get out of there, but it’s a draw to the state for all these other things that come here.

“We couldn’t be happier that they’re really pushing on that. We’re helping everywhere we can.”