Plumes of black smoke could be seen from miles away after fire broke out during a static test.
The multi-million dollar private American aerospace manufacturer company was set to launch a 'recycled' rocket this afternoon.
Nasa said space exploration and technologies firm, SpaceX, was conducting a test firing of its unmanned rocket when the blast occurred on Thursday morning.
Witnesses said the blast shook buildings miles around and explosions continued for some minutes.
Sirens could be heard in the aftermath as a cloud of dark smoke filled the overcast sky.
A source, Ian Dawson, said, "It had been scheduled to launch on Saturday to deliver Facebook's first satellite into orbit. It was part of the social media's site CEO Mark Zuckerberg's vision of bringing the internet to areas of Saharan Africa.
RexA SpaceX Falcon 9 RocketThe SpaceX Falcon 9 rocket being launched earlier this year
No injuries have been reported so far following the explosion."