Midland Development Corporation Approves Incentive to Support AST SpaceMobile Expansion

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Midland Development Corporation Approves Incentive to Support AST SpaceMobile Expansion 

New Satellite Manufacturing and Production Facility Expansion to Create 1,800 Jobs and Further Establish Midland as a Leading Regional Aerospace Hub 

July 21, 2026 – Midland, Texas— The Midland Development Corporation (MDC) Board of Directors and Midland City Council have approved a performance-based incentive agreement supporting AST SpaceMobile's additional expansion in Midland through the construction of a new 400,000+ square-foot satellite manufacturing and production facility at the Midland Spaceport Business Park. 

The project represents the largest aerospace manufacturing investment in Midland’s history and will create 1,800 full-time jobs and generate $144 million in annual payroll at full build-out. The expansion is expected to contribute approximately $1 billion annually to Midland’s GDP, further diversifying the economy while strengthening the community's position as a regional leader in aerospace, defense, and advanced manufacturing. The expansion includes $100 million taxable capital investment through 2034 in Midland to fund the new facility and operational technology. 

"This project represents a defining moment for Midland's future," said Mayor Lori Blong. “AST SpaceMobile's decision to grow here reflects the strength of our workforce, our infrastructure, and our commitment to building an economy that creates opportunities for generations to come. All incentives are earned after meeting verified performance metrics. This agreement safeguards taxpayers and supports long-term economic growth." 

The Midland Development Corporation was established to diversify and strengthen Midland's economy by recruiting industries that create quality jobs and long-term economic opportunities. Aerospace and defense have become strategic priorities for both the State of Texas and Midland because of their importance to economic growth, innovation, and national security. 

"This is exactly the type of investment the Midland Development Corporation was created to attract," said Brad Bullock, Chairman of the Midland Development Corporation Board of Directors. "These are high-paying jobs that strengthen our local economy while generating lasting benefits for our taxpayers. Our board worked diligently to ensure this agreement protects the public investment through strong accountability measures while positioning Midland as one of the nation's premier locations for aerospace manufacturing." 

The incentive agreement is performance-based, meaning AST SpaceMobile must meet specific milestones related to job creation, payroll, capital investment, and ongoing operational activity before incentive payments are earned. Incentives will be reduced, withheld, or repaid if performance requirements are not achieved. 

Under the agreement, AST SpaceMobile is eligible to receive up to $66 million over 30 years, including a $16 million ground lease reimbursement returned to the City of Midland, and annual performance incentive payments capped at $3.3 million per fiscal year. No tax incentives are included in the agreement, allowing all local taxing entities including the City of Midland, Midland County, Midland ISD, Midland College, Midland Memorial Hospital District to receive the full taxable value of the investment immediately. 

The expansion builds upon Midland's growing aerospace ecosystem and supports the community's long-term vision of becoming a premier destination for aerospace manufacturing, commercial space operations, and advanced technology industries. The project will create one of the region's largest private employers outside of the energy sector. 

“Our continued investment in Midland reflects the exceptional environment the community has created for advanced manufacturing, and the unique capabilities of the Midland International Air & Space Port " said Shanti Gupta, Chief Operating Officer at AST SpaceMobile. "The combination of a highly skilled industrial workforce, world-class infrastructure, and a community committed to innovation gives us the confidence to continue expanding our operations here. As we scale production to support the global deployment of our space-based cellular broadband network, Midland will remain at the center of our manufacturing strategy." 

About Midland Development Corporation (MDC) 

The MDC was created in January 2002 to promote business expansion, job creation, and capital investment to diversify and strengthen the Midland, Texas, economy. We do so by offering incentives to qualified new and existing employers who create jobs for the community. Midland voters made these incentives possible when they approved a quarter-cent increase in the local sales tax rate, with additional revenues earmarked to promote economic development and diversification. 

Media Contact: Sara Harris | Email: Sharris@midlandtxedc.com | Phone: 432-686-3579