The space exploration and technologies firm confirmed that Amos-6, part of Mark Zuckerberg's future vision for the internet, was completely decimated.
A launch was scheduled on Saturday at 1.33PM GMT to deliver the satellite into orbit to help bring the internet to Saharan Africa.
But the SpaceX rocket carrying it burst into flames on a test run shortly before 9am (local time) today.
Last year an excited Zuckerberg revealed his intentions on delivering the internet from space.
He wrote: "As part of our collaboration with Eutelsat, a new satellite called AMOS-6 is going to provide internet coverage to large parts of Sub-Saharan Africa.
"The AMOS-6 satellite is under construction now and will launch in 2016 into a geostationary orbit that will cover large parts of West, East and Southern Africa.
"We’re going to work with local partners across these regions to help communities begin accessing internet services provided through satellite."
Nasa said space exploration and technologies firm SpaceX was conducting a test firing of its unmanned rocket when the blast occurred on Thursday morning (local time).
Witnesses said the blast shook buildings for miles around and multiple explosions continued for several minutes.
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