Spain leads IRIS2: the largest European space program with €1.6 billion

What has happened: Spain in command of the IRIS2 ground segment

The European Commission and the SpaceRISE consortium have closed negotiations for the IRIS2 program, the European constellation of secure communications satellites that will compete with Starlink. The agreement, announced in August 2026, reveals that Hispasat, a Spanish company, will be the main contractor for the ground segment, a contract valued at more than €1.6 billion. This is the first time a Spanish company has led a component of this magnitude in a European space program.

The IRIS2 program is not new: it has been in the making since 2022, when the European Union initially allocated €2.4 billion for its development. However, the final design of the constellation and the allocation of main roles took almost four years to materialize, reflecting the technical and political complexity of the project. According to the final agreement, IRIS2 will have 348 satellites in total: 330 in low Earth orbit (LEO) and 18 in medium Earth orbit (MEO), plus an additional layer in very low Earth orbit (Low-LEO) at less than 750 kilometers in altitude, designed for low-latency services. Of the LEO satellites, 66 will be dedicated exclusively to defense, security, and emergencies, an addition to the original design that reinforces the security component and responds to current geopolitical tensions. The first launches are scheduled for 2029, although full deployment could extend until 2032.

Why it matters: a milestone for the Spanish space industry

Historically, Spain has played a secondary role in major European space consortia, limited to minority stakes. For example, in the Galileo program, the Spanish company GMV participated in the ground segment, but not as the main contractor. This contract places Hispasat as a main partner in the ground segment, which includes antennas, control systems, and connection to terrestrial networks. It is a recognition of Spanish technological capability and opens the door to future leadership in other European space programs, such as the future Earth observation satellite network or the space defense program.

Furthermore, IRIS2 is a strategic project for European autonomy: it will provide secure government communications, independent of foreign infrastructure. In a tense geopolitical context, with the war in Ukraine and the dependence on Starlink for Ukrainian military communications, Europe needs to guarantee its own capabilities. IRIS2 fills that gap with a total investment of €15.6 billion: €11.6 billion public (from the EU, the European Space Agency, and member states) and €4 billion from the private consortium SpaceRISE, led by Eutelsat, SES, and Hispasat. This public-private financing model is similar to the Copernicus program, but with a greater weight of private investment, reflecting the ambition to make IRIS2 a commercially viable project.

Consequences: impact on the market and industry

The IRIS2 program will have multiple effects. For the Spanish industry, it represents an economic and technological boost: the management of the ground segment will generate skilled employment and development of capabilities in areas such as cybersecurity, quantum communications, and control systems. It is estimated that the Hispasat contract will create more than 1,000 direct and indirect jobs in Spain, mainly in Madrid and the Basque Country, where the company has operations centers. For the European market, it introduces a strong competitor against Starlink, with the potential to offer commercial services to businesses and governments. IRIS2 is expected to offer high-speed broadband services, IoT connectivity, and secure communications for sectors such as transport, energy, and banking, at competitive prices.

On the geopolitical front, IRIS2 reinforces European digital sovereignty, reducing dependence on foreign operators in critical sectors. This move is comparable to the launch of the Galileo program in 2016, which provided Europe with a satellite navigation system independent of the US GPS. Like Galileo, IRIS2 is not just a technological infrastructure, but a symbol of Europe's ability to make autonomous decisions in space. For Hispasat, it is an opportunity for international expansion and diversification beyond its traditional geostationary satellite business, which has been under pressure from competition from LEO constellations.

What readers should know

• Timeline: the first launches are expected in 2029, but there are still no definitive dates for full deployment, which could last until 2032.
• Financing: the program is funded with public and private funds, ensuring its long-term viability, although the return on private investment will depend on commercial success.
• Security: the layer of 66 satellites for defense is an important novelty, underscoring the strategic nature of the project. This implies that the satellites will be designed to resist interference and cyberattacks, and that the ground segment must meet strict security standards.
• Competition: IRIS2 not only seeks security, but also commercial competitiveness against Starlink and other constellations such as OneWeb and Amazon's Kuiper. It is expected to offer services starting in 2030, when Starlink will already have a consolidated user base, so success will depend on differentiation in government and security services.

IRIS2 is not just a technological project: it is a declaration of intent by Europe not to depend on third parties in an area as sensitive as satellite communications.

The news confirms that Spain has ceased to be a secondary player in the European space sector. The challenge now is to turn this leadership into a sustainable competitive advantage, which will require continued investment in talent, R&D, and collaboration with other European companies. If it succeeds, Spain could position itself as a reference space hub in southern Europe, attracting investments and future projects.