Exmouth originated as a support town for the Defence industry when the USA built the Naval Communications Station there in 1963, to communicate with submarines through its NAVCOMSTA Harold E Holt base.

The base is still manned and operating and is a vital part of the world-wide defence communications and monitoring capability of the US and Australia.

Exmouth has a range of other important Defence facilities also, most importantly, the Royal Australian Air Force RAAF Base Learmonth, which doubles as a civilian airport and features a 3000m long runway.

The nearby Learmonth Solar Observatory is jointly operated by the Australian Bureau of Meteorology and the United States Air Force and monitors sunspots and other solar surface activity with optical and radio telescopes, a solar radio spectrograph, magnetometers and other equipment. 

The Space Surveillance Telescope (SST) is a Southern Hemisphere-based United States Space Force telescope used for detecting, tracking, and cataloguing satellites, near-Earth objects, and space debris and is established on a high ridgeline behind the town.

Australia, the United States and United Kingdom will collaborate on the Deep-space Advanced Radar Capability site which is currently being constructed.

The town has a vibrant tourist industry due to its sunny climate, numerous clean beaches, its surfing and diving opportunities, the nearby national parks and its pristine marine and terrestrial environment.  As home to operations staff on its many Defence facilities, the town is well able to accept more Defence-related industries and staff.