Greenland, the world's largest island, lies between the Atlantic and Arctic oceans. It is 80% covered by ice, home to a large U.S. military base, and gained home rule in 1979.

Troels Lund Poulsen, the Danish defense minister, told the paper Jyllands-Posten Tuesday that the country plans to spend a “double-digit billion amount” in krone — about $1.5 billion — to make sure they have a “stronger presence” in the Arctic.