Denmark boosts defence spending: Why does Trump want to buy Greenland?

Denmark announced a significant boost to defence spending for Greenland following Donald Trump's remarks about purchasing the country

Denmark has announced a significant increase in its defence spending for Greenland, coinciding with US President-elect Donald Trump’s renewed remarks about purchasing the Arctic territory. The Danish government revealed a defence package worth at least $1.5 billion (12–15 billion krone), aimed at strengthening its military presence in the strategically vital region, according to a report by the BBC.

 

“We have not invested enough in the Arctic for many years, now we are planning a stronger presence,” Danish Defence Minister Troels Lund Poulsen told BBC. Meanwhile, Greenland Prime Minister Mute Egede firmly announced that the nation was “not for sale and will never be for sale”. Egede said the country should remain open to cooperation and trade with its neighbours.

 

 

Background on Greenland and Denmark control

Greenland remained largely unexplored, inhabited by natives until the 1700s when Danish-Norwegian expeditions began in the region and it was formally claimed as a Danish colony. The US first established its presence on the island during World War II when Denmark was occupied by Nazi Germany.

 

The US established a military presence that remains operational even today. The US was further granted control over Greenland’s defense, but Denmark retained sovereignty.

 

Throughout the Cold War, the US military used the island for early warning radar stations, military bases, and monitoring Soviet activities in the Arctic.

 

In 1979, Greenland gained a degree of self-rule with Denmark granting the island home rule. This was later expanded in 2009 through the Self-Government Act, which gave the island full control over its natural resources and greater authority over its foreign affairs. However, Denmark remained responsible for its defense and foreign policy, and Greenland’s residents are still Danish citizens. 

Even today, there are ongoing discussions about Greenland gaining full independence.

 

Why does Trump want to ‘purchase’ Greenland?

Donald Trump’s interest in purchasing Greenland first surfaced in 2019, driven by both strategic and economic motivations. The idea was met with resistance from both Denmark (which governs Greenland) and Greenland itself, and the idea was ultimately dropped after a public spat. However, the proposal highlighted Trump’s tendency to approach international relations with a focus on economic gain and real estate-style thinking.

 

On Monday Trump said ownership and control of the huge island was an “absolute necessity” for the US. On his social media platform Truth Social, he wrote, “For purposes of National Security and Freedom throughout the World, the United States of America feels that the ownership and control of Greenland is an absolute necessity.”

 

Why Greenland matters to the US

Greenland has significant geopolitical, economic, and environmental value for the US, among which are: 

1. Strategic location: Greenland’s position between North America and Europe makes it vital for monitoring missile threats and launching countermeasures. The US operates the Pituffik Space Base (formerly Thule Air Base) on the island, which played a key role during the Cold War and continues to be critical for defence against Russia, China, and North Korea.

 

2. Rare earth minerals: Greenland is rich in minerals essential for technology and defence, including rare earth elements used in mobile phones, electric vehicles, and weapons. As China dominates the global rare earth market, Greenland’s reserves are of increasing interest to the US.

 

3. Arctic navigation: Melting Arctic ice is opening new waterways, drawing global powers to the region. The US seeks to counter Russia and China’s growing influence in Greenland and the Arctic, ensuring its dominance in strategically evolving lands.

 

Previous efforts of US to acquire Greenland

This is not the first time the US has shown interest in acquiring the island. Under President Andrew Johnson in 1867, the US State Department noted Greenland’s resources and location as ideal for acquisition but made no formal efforts.

 

Nearly a century later, President Harry S Truman offered Denmark $100 million for Greenland in 1946 after recognising its strategic value post-World War II. Truman also considered trading parts of Alaska for Greenland, though the deal never materialised.

 

More recently, former US President Donald Trump, during his first term in 2019, proposed purchasing Greenland, calling it a “large real estate deal”. Denmark rejected the idea, with then-Prime Minister Mette Frederiksen terming it “absurd”. Trump cancelled a planned visit to Denmark in response.

 

Now, the businessman has once again brought up the idea, showing his keenness on extending not only his personal real estate portfolio, but also America’s.

 

Denmark’s defence investment in Greenland

Danish Defence Minister Troels Lund Poulsen plan for increasing security in Greenland includes:

• Purchasing two new inspection ships and two long-range drones.
• Adding two extra dog sled teams for patrol and transport.
• Upgrading Arctic Command in Nuuk, Greenland’s capital.
• Modernising one of Greenland’s three civilian airports to accommodate F-35 supersonic fighter jets.

 

Poulsen acknowledged the long-standing underinvestment in Greenland’s Arctic security, calling the new measures essential to safeguard the territory’s interests against external pressures, particularly from Russia and China.