A multi-billion-dollar data center project, spearheaded by a former Trump administration official, is in the works for a remote region of Greenland. This ambitious venture aims to capitalize on the burgeoning demand for AI infrastructure, with hyperscalers worldwide racing to expand their capacity.
The Greenland facility is slated to achieve an operational capacity of 300 megawatts (MW) by mid-2027, with plans for further expansion to a substantial 1.5 gigawatts (GW) by the end of 2028. This scale far surpasses that of any currently active data center globally. However, the trend towards developing multiple facilities exceeding 1 GW is accelerating as the AI race intensifies.
The project, estimated to cost billions, has secured binding commitments from investors to finance half of its initial development phase and half of the final expansion, according to Drew Horn, CEO of GreenMet, a firm providing strategic support. GreenMet’s involvement is significant, given its stated mission to assist companies in securing government and private funding, as well as forging strategic partnerships. Notably, other former senior Trump appointees, including George Sorial and Keith Schiller, were instrumental in GreenMet’s establishment and remain minority shareholders, though they emphasize a passive role.
The proposed location is Kangerlussuaq, a small settlement on Greenland’s southwest coast, chosen for its existing airport and strategic position. While technical partners have been engaged for the physical construction, the project is still awaiting land acquisition and crucial approvals from local authorities. Horn indicated that the names of other involved companies are not yet public.
Greenland has recently been thrust into the global spotlight due to geopolitical interest, particularly following former President Donald Trump’s past pronouncements regarding potential acquisition. While discussions have centered on critical minerals and freshwater reserves, logistical challenges have tempered enthusiasm.
Data center transactions reached a record $61 billion in 2025, driven by the immense power requirements of AI workloads. Tech giants like Meta, OpenAI, Oracle, AWS, Microsoft, and Google are channeling significant capital into constructing new facilities worldwide.
Horn detailed that work on the Greenland project commenced a year ago, with GreenMet securing technical partners for construction, operation, and energy supply. The financing, a mix of debt and equity, is conditional on meeting key milestones, including obtaining necessary permits. Horn, who previously held senior advisory roles in the energy and intelligence departments during Trump’s first term, has been actively engaging with Greenlandic and Danish officials. He recently met with the Danish Ambassador to the U.S. to discuss the data center.
While acknowledging support from various parties, Horn highlighted that the primary challenges are diplomatic rather than commercial, referencing the complex geopolitical landscape surrounding U.S. interest in Greenland. Though tensions have eased since previous tariff disputes, ongoing negotiations regarding U.S. military and economic engagement in the region continue to shape the environment. Horn stressed that the success of this “purely private” endeavor hinges on the buy-in of all relevant stakeholders and nations.
Securing a stable and substantial power supply is a critical hurdle. For the initial 300 MW phase, the plan involves utilizing specialized barges to deliver Liquefied Natural Gas to the fjord. The subsequent expansion to 1.5 GW envisions the construction of a hydroelectric facility, aligning with Greenland’s energy landscape where hydropower constitutes approximately 70% of its power generation. Permits for both the LNG barges and the hydroelectric facility are pending.
Horn expressed confidence that the successful development of the hydroelectric facility would ensure the project’s long-term commercial viability through competitive energy pricing.
Industry analysts point to the inherent advantages of data centers in low-temperature environments. “The biggest value sits in its resource profile, specifically in hydro for electricity generation and a ‘free cooling’ proposition given the lower ambient temperature,” noted Noah Ramos, strategist at Alpine Macro.
However, significant challenges remain. Ramos cautioned, “Building in the Arctic is capital intensive; construction seasons are short, and the heat from the servers can melt the very ground the building sits on… specialized engineering is needed.”
Furthermore, advancements in chip technology, such as those being developed by Nvidia, which promise increased efficiency and reduced cooling requirements, could potentially alter the landscape for extensive data center builds in extreme environments. As Michael Field, chief equity strategist at Morningstar, observed, “It’s early days, but if future generations of chips are even more efficient in this regard, it could negate the need for expensive data centre build outs in places like Greenland.”
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