Denmark bolsters Arctic defense with $2B investment amid US interest in Greenland

Denmark will allocate 14.6 billion kroner (approximately $2 billion) to enhance security in the Arctic region, a vital area in geopolitical and military terms, the country’s defense ministry announced on Monday.

The move follows U.S. President Donald Trump’s recent comments suggesting an interest in acquiring Greenland, the autonomous Danish territory, citing its importance to U.S. “international security.”

The strategic location of Greenland, along with its untapped mineral resources, has made it a focal point in the growing global competition over the Arctic region, especially as climate change has opened new shipping routes in the area.

Denmark’s Defense Minister Troels Lund Poulsen emphasized the escalating security challenges in the Arctic and North Atlantic. “We must face the fact that there are serious challenges regarding security and defence in the Arctic and North Atlantic,” Poulsen said in a statement.

The announcement comes as Danish Prime Minister Mette Frederiksen prepares for a series of meetings in Berlin, Paris, and Brussels this week, aimed at reinforcing “European unity” on matters related to Greenland. She emphasized the importance of collaboration in light of the ongoing war in Europe and shifting global dynamics.

“Europe is facing a serious situation. With war on the continent and shifts in the geopolitical reality. In moments like this, unity is crucial,” Frederiksen stated.

During her visit, Frederiksen plans to meet with French President Emmanuel Macron, German Chancellor Olaf Scholz, and NATO Secretary General Mark Rutte. The discussions will focus on ensuring collective European and transatlantic solidarity.

“Denmark is a small country with strong allies. And it is part of a strong European community where together we can meet the challenges we face,” she added.