https://www.svd.se/a/n1AOzx/usa-bolag-redo-satsa-miljarder-i-datacenter-pa-gronland
Big bets on Greenland: "Becoming a massive player"
The conflict over Greenland is not just about defense and minerals. A huge American industrial project is about to be established on the island, Trump's former advisor reveals to SvD. "Greenland will become a massive player in AI."
The state-owned Greenlandic telecom company Tusass is in full swing building a new data center in the capital, Nuuk. The island's second in total. Modern, but modest in size, it is designed to secure critical infrastructure for the country's 56,000 inhabitants.
Soon it will be joined by a facility of a completely different scale.
SvD can now report that an American company is about to begin building a data center intended for AI development in Kangerlussuaq, thirty kilometers north of Nuuk.
The first phase is due to be completed next year. When fully developed, the data center will have a capacity of 1,500 MW, which is more than any other data center in any other Nordic country.
“Previously, companies were concerned that Greenland was so remote and expensive,” says Drew Horn, CEO of the consulting company Greenmet, which negotiated the project.
– Now investors and tech companies are begging on their bare knees to be a part of everything that has to do with Greenland. The country is going to be a massive player in AI.
Military confrontation no concern
These are turbulent times for those who want to do business on the world's largest island.
Greenlanders have long been divided over plans to exploit the country's rich natural resources. President Donald Trump's statement that he wants to take over the island - by force if necessary - has not made matters any better. It has also shaken transatlantic cooperation and caused European countries to send troops.
Drew Horn, on the other hand, sees the conflict as a storm in a teacup.
– No one in my circle is worried about a military confrontation. It's not on the map. People miss the point that when a politician says an invasion is not unthinkable, it doesn't mean there is an actual plan for it.
Drew Horn, CEO of the consulting company Greenmet. Photo: GreenMet
Rather, he believes that Trump's persistent focus on Greenland is something that has created confidence among investors, including for the new data center.
– This is a multi-billion dollar project that will be extremely lucrative when it is completed. But it requires a lot of start-up capital. Previously, there were not strong enough signals from the US government. Now they have introduced a number of incentives that have created a rush of private capital to the table.
Minerals and renewable energy
For Drew Horn, this is the fruit of long and persistent work. During Trump's first term, he was tasked with developing the US's strategy on critical minerals. At that time, he identified Greenland as a key target, and visited the country on several occasions.
“I fell in love with the country and its potential,” he says.
– Not just the minerals, but the possibility of renewable energy.
When Trump lost the 2020 election, Horn founded Greenmet. The company acts as a spider in the web between foreign companies and Greenlandic authorities, and also takes advantage of Horn's good contacts within the US government.
Data centers can be jackpot
First up are mining projects. Greenland has access to most of the critical metals that the US and Europe are seeking. Among them are rare earth metals. Horn believes that commercial mining in one of his projects could begin as early as 2027 or 2028.
But there are also many skeptics.
“There are eleven hundred discovery sites in Greenland that have been known for years,” says Malte Humpert, founder of the think tank The Arctic Institute.
A camp belonging to the Greenland Minerals and Energy Authority at a rare earth deposit. Photo: Andrew Testa/ NY Times
– But there are only two active mines. That says most of what you need to know. Greenland has a harsh climate, rare earth metals are difficult and toxic to mine, and most Greenlanders don't want industry.
Maybe data centers could be Greenland's jackpot instead. Cold climate reduces electricity consumption to cool servers. There are good opportunities for renewable electricity. And plenty of space.
The US government can finance
In the US, local communities are increasingly protesting the expansion of data centers, which they say lead to higher electricity prices and lower property values. It has halted or delayed $64 billion worth of projects, according to the organization Data Center Watch, and is seen as a long-term threat to America’s AI development. It has prompted companies like Microsoft to promise better behavior.
According to Drew Horn, the solution lies in the North Atlantic.
– Greenland is the best place in the world to run data centers.
A telecommunications antenna in Greenland. Submarine cables connect the country's fiber network with Canada to the west and Iceland to the east. Photo: Alamy
He admits that the cost is high. Materials, workers and fuel must be imported. For the new data center, there are long-term plans to build a hydroelectric power plant. One reason investors are now considering such costs is because the Trump administration may offer financing, Horn suggests.
– Winning the AI race is Trump's priority.
Data centers are also not a polarizing industry, like mining. It has support from several political parties. Jørgen Rosbach, a county council member from the ruling Demokraatit party, tells SvD that the sector creates great opportunities and he is actively working to attract more investment.
“Trump is misunderstood”
– We can draw inspiration from countries like Iceland and Sweden, which have successfully positioned themselves as attractive destinations for green data centers through targeted policy strategies.
But while Drew Horn believes the US government has made commercial projects in Greenland possible, he acknowledges that political tensions pose problems. The high tone of recent weeks has led him and his partners to delay the announcement of the data center.
Due to the sensitivity of the matter, he is not yet prepared to go public with the names of the companies involved.
“It is important that the investment lands in a positive light,” he says.
He largely believes that Trump is misunderstood.
– I think the government wants to get commercial agreements that lead to increased cooperation with Greenland, Denmark and the EU. But that is being lost because of Trump's negotiating tactics. He comes from the New York real estate sector where the language can be tough.
A truck at one of Greenland's two active mines, Seqi. Photo: Clive Tully/Alamy
Outwardly, Trump says that annexing Greenland is about national security. But the commercial connections run deep.
Tech billionaires like Sam Altman, Jeff Bezos and Mark Zuckerberg have all invested in mining company Kobold Metals to drill in Greenland. Financial firm Cantor Fitzgerald, formerly led by current Commerce Secretary Howard Lutnick, has invested in mining company Critical Metals, which holds a mining license on the island.
According to The Guardian, the idea of taking over Greenland comes from cosmetics billionaire Ronald Lauder, who has also made several investments on the island. Several tech figures such as Peter Thiel, his former colleague Ken Howery – who is now the US ambassador to Denmark – and Marc Andreessen are also said to be interested in making Greenland home to a number of libertarian “freedom cities”.
Drew Horn says that Trump's intentions will soon become clear and that his political maneuvers will have an effect.
– We will soon have an agreement that benefits everyone.
