Denmark to Spend $2 Billion Beefing Up Military Capabilities in Greenland

Danish troops on board the frigate Niels Juel during a trip to Greenland in June 2020. Iben Valery/Danish Ministry of Defense

Denmark has unveiled the details of a $2.05 billion package to boost its military presence in the Arctic, following repeated requests by President Donald Trump for the United States to acquire Greenland, a semi-autonomous Danish territory.

Last month, shortly after Trump made his first remarks about Greenland, Danish Defense Minister Troels Lund Poulsen told the Danish newspaper Jyllands-Posten that his government would soon announce a defense package that would amount to at least $1.5 billion.

But on Jan. 27 he unveiled a detailed package, worth $2.05 billion.

The money will pay for three new Arctic navy vessels, which will be equipped with helicopters and drones.

The Danish government stated it also plans to permanently site two long-range drones in Greenland “with the ability to conduct surveillance over large areas at great distances and provide detailed surveillance.”

The government stated it will also fund extra satellite capacity and ground-based sensors to “strengthen situational awareness and intelligence.”

Money will also be spent on upgrading the facilities of the Joint Arctic Command in Greenland’s capital, Nuuk.

Lund Poulsen told a press conference in Copenhagen on Jan. 27: “We must face the fact that there are serious challenges regarding security and defense in the Arctic and North Atlantic. For this reason, we must strengthen our presence in the region.”

The Danish Defense Ministry document, which sets out the new funding, states: “Geopolitical tensions between Russia, China, and the United States have spilled into the Arctic and the goal of low tension in the region is under pressure. Denmark, the Faroe Islands, and Greenland must respond to the intensified security situation.”

‘Changing Security Landscape’

Greenland’s minister of statehood and foreign affairs, Vivian Motzfeldt, said: “Greenland is facing a changing security landscape. I am pleased with the steps we are taking towards increased security in and around Greenland with this partial defense agreement.”

She said the government of Greenland’s Cabinet, or Naalakkersuisut, is “looking forward to continuing the dialogue with the government of Denmark.”

As a semi-autonomous territory, Greenland runs its domestic matters, but its foreign affairs—including defense—are controlled by Denmark. The former Danish colony is strategically located about halfway along the shortest route from Europe and Russia to North America.

Greenland is also home to a large U.S. military base with missile warning and space-surveillance systems.

The Arctic is the shortest path for intercontinental ballistic missiles between the United States and Russia, making Greenland a critical outpost amid rising global power rivalries.

Denmark and the United States are bound by a 1951 defense agreement, which grants Washington exclusive control over some of Greenland’s defense zones and the ability to enhance U.S. surveillance of Arctic waters, central to NATO’s Arctic strategy.

Trump has said acquiring Greenland would be beneficial for the security and economic interests of the United States and its allies.

Earlier this month Greenlandic Prime Minister Mute Egede said he was ready to talk to the United States and added: “Cooperation is about dialogue. Cooperation means that you will work towards solutions.”

Danish Foreign Minister Lars Lokke Rasmussen spoke with U.S. Secretary of State Marco Rubio on Jan. 24, and they agreed to discuss Greenland in detail at a later date.

‘Rooted in Local Communities’

On Jan. 27, Lund Poulsen said, “It is essential that the strengthened efforts in the Arctic and North Atlantic are carried out in close cooperation with the Faroe Islands and Greenland in order for the initiatives to be rooted in local communities and have a positive impact on civil society.”

The Faroe Islands is another much smaller semi-autonomous Danish territory, situated between Iceland and Norway.

Danish Defense Minister Troels Lund Poulsen (C) speaks at a press conference at the Ministry of Defense in Copenhagen, Denmark, on Jan. 28, 2025. Danish Ministry of Defense

In a statement on its website, the Danish Defense Ministry said, “Ensuring that investments through the agreement can provide support for local workplaces and businesses in the Faroe Islands and in Greenland will be a focal point throughout the implementation of the agreement.”

The defense package is the first part of a two-part deal. The Danish government said a second agreement,  focusing on strengthening deterrence and defense in the region, was “foreseen to be concluded in the first half of 2025.”

The Danes did not say whether the Pentagon and the State Department would be included in the negotiations for that second agreement, but it seems likely in view of Trump’s comments.

Rasmussen said on Jan. 8 that Greenland may in future become independent, but is unlikely to become part of the United States.

Rasmussen said: “We fully recognize that Greenland has its own ambitions. If they materialize, Greenland will become independent, though hardly with an ambition to become a federal state in the United States.”

Reuters contributed to this report.