While Donald Trump keeps framing Greenland as a national security issue, the real reasons behind the U.S. push run deeper, and a lot richer.
For years, American billionaires including Bill Gates, Peter Thiel, Sam Altman, Leonard Lauder, and Jeff Bezos have been quietly investing in AI-powered rare earth exploration on the island. Plans for a so-called “freedom city” have also been floated since Trump’s first term.
What makes Greenland so attractive? AI data centers are power-hungry and heat up fast, but Greenland’s year-round Arctic chill offers natural “free cooling,” cutting energy costs by up to 40%.
Combine that with 70% renewable hydropower, and the island becomes the perfect place for clean, scalable AI infrastructure.
Then there are the minerals. Greenland holds 1.5 million tons of rare earth elements, ranking eighth globally. Two sites (Kvanefjeld and Tanbreez) are among the world’s largest deposits, but no mining has started yet.
The terrain is brutal. Only 20% of the land is ice-free, and temperatures can drop below -40°F. Still, melting ice caps are unlocking more access, creating new routes and opportunities.
The U.S. sees this as a critical supply chain play. In 2025, China’s export controls on heavy REEs wrecked Western automakers and defense contractors.

Since then, Trump has ramped up public-private rare earth partnerships, like the one with MP Materials, and inked deals with Saudi Arabia, Japan, and Australia to reduce reliance on China.
Greenland is next. Back in 2019, the U.S. signed a memorandum of understanding (MOU) to develop mineral resources with Greenland, but efforts to renew it under Biden failed.
Now, Trump is moving fast. In June 2025, the U.S. Export-Import Bank offered $120 million to fund the Tanbreez mine, which would mark Trump’s first overseas mining investment if approved.