Published by Global Banking & Finance Review®
Posted on October 10, 2025
2 min readLast updated: January 21, 2026
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Denmark is investing $4.26 billion to strengthen its Arctic defense, including the purchase of 16 new F-35 jets, amid U.S. concerns over Greenland's defense capabilities.
HELSINKI (Reuters) -Denmark will invest 27.4 billion crowns ($4.26 billion) to boost its military presence in the Arctic and plans to buy 16 new F-35 aircraft, it said on Friday, seeking to fend off U.S. criticism over Greenland's defence capabilities.
The 16 F-35s, worth another 29 billion crowns, would be in addition to Denmark's original commitment to acquire 27 of the U.S.-made fighter jets as the Nordic country continues to ramp up its national defence, Danish Defence Minister Troels Lund Poulsen told reporters.
"These are investments that are necessary in difficult times, when, unfortunately, war has once again broken out on European soil," Poulsen told reporters.
AGEING INSPECTION VESSELS AND DOG SLED PATROLS
U.S. President Donald Trump has said he wants to gain control of Greenland, a Danish sovereign territory, arguing that the Arctic island is vital for the U.S. military and its ballistic missile early-warning system, as the shortest route from Europe to North America runs via the island.
The Danish and Greenland governments have both ruled out yielding the huge, resource-rich island to U.S. control, although Denmark has acknowledged neglecting the territory's military capabilities.
The investment in Greenland and the Faroe Islands will fund two new Arctic ships in addition to three previously agreed vessels, a maritime patrol aircraft, icebreaker capacity, enhanced radar systems, and drones, Poulsen said.
It will also establish a new military headquarters in the capital Nuuk, he said.
Denmark, while responsible for Greenland's security and defence, has limited military forces on the island, including ageing inspection vessels and dog sled patrols.
The use of dog sleds for patrolling Greenland, which is four times the size of France, dates back to World War Two and remains a specialized unit of the Royal Danish Navy.
The U.S. military maintains a permanent presence at the Pituffik Space Base in Greenland's northwest.
($1 = 6.4341 Danish crowns)
(Reporting by Louise Rasmussen, editing by Essi Lehto, Aidan Lewis)
Military investment refers to the allocation of financial resources to enhance a nation's defense capabilities, including purchasing equipment, technology, and infrastructure to improve security.
F-35 aircraft are advanced stealth multirole fighters developed by Lockheed Martin, designed for various missions including air-to-air combat, air-to-ground strikes, and intelligence gathering.
Military assets include equipment, personnel, and infrastructure that a nation uses to conduct military operations and ensure national security.
Greenland's defense is significant due to its strategic location, which is vital for military operations and surveillance, particularly for the U.S. military's early-warning systems.
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