Tenerife Launches €79 Million 'Space Horizon' Strategy to Become Atlantic Aerospace Hub

Tenerife is positioning itself as a major aerospace hub in the Atlantic, marking a significant shift in the island’s economic strategy. Announced this week at the South Summit in Madrid, the island’s new roadmap, Tenerife Space Horizon, aims to invest 79 million euros with the goal of generating 400 million euros in economic returns over the next five years.

This initiative is designed to move the island’s economy beyond its traditional reliance on the service sector by introducing high-value industries. The project builds on existing infrastructure, such as the Technological and Renewable Energy Institute (ITER), and leverages competitive advantages like a specialized tax regime that offers R&D deductions of up to 90%—far higher than the national average.

At the heart of this strategy is the Canary Islands Constellation, a 21-million-euro project to launch a network of small satellites. Managed by Telespazio Ibérica, these satellites will provide daily monitoring of the archipelago for environmental protection, resource management, and emergency response, while also strengthening local communications.

Complementing this is the CanarySat project, an 18-million-euro investment developed with ARQUIMEA. This includes a new teleport that will connect space networks with the island’s submarine cables and local supercomputing power. To handle the resulting data, the German firm Bechtle has been brought in to upgrade the ITER’s supercomputing capacity.

Innovation Minister Juan José Martínez Díaz reported that the project is ahead of schedule, with the local tech ecosystem growing from 26 to 56 companies in just one year. To maintain this momentum, the Island Council is launching a venture capital fund to attract specialized talent in engineering, programming, and telecommunications.

By tapping into the global space market—which topped 613 billion dollars in 2024—Tenerife is using its unique geography and scientific expertise, including the renowned Canary Islands Institute of Astrophysics, to build a sustainable tech hub. The ultimate goal is to attract investment, retain skilled workers, and diversify the local job market.