Space Exploration Technologies Corporation (SpaceX) said it will build the U.S.' first commercial rocket launch facility near Brownsville, Texas.

The announcement came after SpaceX received approval for the construction plan from the U.S. Federal Aviation Administration.

SpaceX, which was founded by Telsa Motors founder Elon Musk, is based in Hawthorne, California. The company has a US$1.6 billion contract with NASA to fly cargo to the International Space Station.

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Musk said the company is thrilled to be bringing the first commercial launch complex to Texas.

Texas Governor Rick Perry said SpaceX will provide more than 300 jobs at the site in addition to the 250 jobs it already has at its rocket testing facility.

Perry said that for years, Texas has been leading the U.S.' space exploration efforts.  

"It is fitting that SpaceX has chosen our state as they expand the frontiers of commercial space flight," Perry said. 

In addition, Perry's office said the state will provide US$15 million worth of incentivest for the rocket center.

Musk said on top of creating jobs, the construction of the launch site will also inspire students that want to pursue a career in space exploration. The site will also attract tourists to the area.

SpaceX considered building the facility in Florida, Puerto Rico and Georgia. But Brownsville Mayor Tony Martinez said he always knew Texas will get the facility, according to ABC News.

The facility is a "barrier breaker," Martinez said.

In 2013, SpaceX entered the market for satellite launches and has one of the cheapest prices in the industry, according to Reuters.

Space Frontier Foundation and Texas Space Alliance founder Rick Tumlinson said the establishment of the launch center is important.

It indicates that at some point, there will be flights from Texas that are heading for the moon or Mars.

"That's huge," Tumlinson said.

TagsSpaceX, rocket launch, Texas