The world’s largest island is currently the center of a global diplomatic firestorm. Following the return of Donald Trump to the White House, the “Greenland Project” has been elevated to a top national security priority.5 As of January 15, 2026, analysts and former officials have estimated that the cost for the United States to acquire the territory from Denmark would reach a staggering $700 billion.
Why the $700 Billion Price Tag?
The valuation of Greenland is notoriously difficult because it is not a traditional real estate market. The $700 billion figure, first reported by NBC News this week, is based on several key factors:
- Resource Potential: Greenland is home to some of the world’s largest untapped deposits of rare earth minerals, molybdenum, and high-grade iron ore, with a theoretical value estimated by some experts at over $4 trillion.
- Strategic “Golden Dome”: President Trump has linked the acquisition to the construction of a “Golden Dome” missile defense system, arguing that controlling the Arctic is vital to countering Russian and Chinese hypersonic threats.
- Economic Subsidies: The price accounts for the “internalization” of the annual block grants Denmark currently pays to Nuuk (roughly $600 million annually), plus the massive infrastructure investment required to make the island economically viable for the U.S.
The “Donroe Doctrine” and Global Tension
U.S. Secretary of State Marco Rubio and Vice President JD Vance met with Danish and Greenlandic officials in Washington on January 14, 2026. The meeting ended in what Danish Foreign Minister Lars Løkke Rasmussen described as a “fundamental disagreement.”
| Perspective | Position (January 2026) |
| United States | Greenland is a “national security necessity”; acquisition is a priority. |
| Denmark | The idea is a “blatant challenge to sovereignty”; Greenland is not for sale. |
| Greenland | Prime Minister Jens-Frederik Nielsen: “We choose Denmark over the U.S.” |
| European Union | Considering freezing trade deals with the U.S. over “annexation threats.” |
Annexation or Purchase?
While the White House prefers a transaction, a bill was introduced in Congress on January 12, 2026, by Rep. Randy Fine (R-FL) to officially annex Greenland as the 51st state. This move has caused panic within NATO, with Danish Prime Minister Mette Frederiksen warning that an armed attempt or forced annexation would “spell the end of the alliance.”
“The U.S. needs Greenland for the purpose of national security… anything less than that is unacceptable.” — President Donald Trump, via social media.
What Happens Next?
Despite the $700 billion valuation, the path forward remains blocked by legal and diplomatic walls.
- High-Level Working Group: The U.S. and Denmark have agreed to form a working group to discuss “security concerns,” though Denmark insists this does not include a sale.
- Multinational Presence: In response to U.S. pressure, Germany, France, and Norway have begun deploying troops to Greenland as part of a multinational force to reinforce Danish sovereignty.
- Domestic Opposition: A Reuters/Ipsos poll shows only 17% of Americans support taking over Greenland, with a majority opposing the use of military force.
Conclusion
Whether $700 billion or $4 trillion, the cost of Greenland is measured in more than just dollars. The proposal has effectively redrawn the geopolitical map of the Arctic, turning a peaceful NATO territory into a flashpoint for 21st-century “ego-politics” and resource competition.
