Denmark has announced a $2.05 billion investment to boost its military presence in Greenland and the Arctic, a move seen as a response to renewed US interest in the strategically vital territory. The funding, part of a broader 10-year, $26 billion defense plan, includes three new Arctic patrol ships, advanced surveillance drones, and upgraded satellite capabilities.
These upgrades strengthen Denmark’s ability to monitor and defend Greenland, which relies on a limited force of aging ships, surveillance planes, and dog sled patrols. The announcement follows over a decade of defense cuts amid growing geopolitical tensions as melting Arctic ice unlocks new shipping routes and resource access.
US President Donald Trump has repeatedly emphasized Greenland’s strategic importance to US security, urging Denmark to relinquish control of the Arctic island. In recent weeks, Trump has stated that acquiring Greenland is “an absolute necessity” and refused to rule out using military or economic force to achieve this goal. He has also suggested Denmark has no legitimate claim to the territory, reigniting debates over its sovereignty.
Greenland hosts the US military’s Pituffik Space Base, a critical missile warning installation for early detection of threats from Russia. The island’s location near the North Pole, rich mineral deposits (including rare earth metals), and position along emerging Arctic shipping lanes have intensified its geopolitical value.
Danish Defense Minister Troels Lund Poulsen emphasized the need to address “serious challenges regarding security and defense in the Arctic and North Atlantic,” stating, “We must strengthen our presence in the region.” The investment also aims to support local jobs in Greenland and the Faroe Islands, reflecting a commitment to regional development alongside security.
Denmark’s Prime Minister Mette Frederiksen has met with European leaders to discuss Greenland’s sovereignty, stressing the need for unity amid shifting geopolitical realities. The European Union has firmly backed Denmark, with EU foreign policy chief Kaja Kallas stating, “We are not negotiating on Greenland’s sovereignty.”
Greenland’s government, led by Prime Minister Mute Egede, has repeatedly declared the territory “not for sale,” though it remains open to cooperation. A recent poll found 85% of Greenlanders oppose US control, with only 6% in favor. The semi-autonomous region receives nearly $1 billion annually in Danish subsidies, highlighting its economic ties to Copenhagen. While Greenland’s leaders have criticized Trump’s rhetoric, they emphasize the importance of maintaining good relations with the US, which provides significant military and economic support.
The Arctic’s melting ice has intensified competition among global powers. Russia’s militarization of the region and China’s growing interest in Arctic resources have further complicated the landscape. Denmark’s investment signals a determination to counterbalance external pressures while asserting its role as a steward of Arctic security. The move also reflects broader concerns about US foreign policy unpredictability, with European leaders wary of unilateral actions that could destabilize the region.
France has expressed solidarity, with Foreign Minister Jean-Noël Barrot stating, “If Denmark calls for help, France will be there,” though plans for EU troop deployment remain preliminary. The Nordic region, including Norway and Sweden, has also expressed support for Denmark’s stance, viewing Arctic security as a collective responsibility. Meanwhile, the US has increased its own Arctic military activities, including expanded operations in Alaska, and plans to reopen a consulate in Nuuk, Greenland’s capital.
The situation presents both challenges and opportunities for Greenland. While the territory remains economically dependent on Denmark, its leaders are increasingly assertive in pursuing autonomy. The recent discovery of rare earth minerals has sparked interest from foreign investors, including China, though Greenland’s government has emphasized environmental and social responsibility in resource development.
The US’s renewed focus on Greenland has sparked criticism from Danish and European leaders, who view the territory as a critical component of European security. Trump’s rhetoric has been dismissed by many as unrealistic, given Greenland’s status as a Danish territory and its population’s overwhelming opposition to US control. However, the situation highlights broader tensions between the US and Europe over defense commitments and strategic priorities.
Denmark’s $2 billion Arctic plan is a calculated effort to safeguard its sovereignty amid escalating US rhetoric and shifting geopolitical dynamics.