COPENHAGEN, Denmark: A spike in U.S. interest in property in Greenland's capital has accelerated efforts by lawmakers to pass a foreign investment screening law, as the Arctic territory seeks to guard against politically sensitive capital inflows.

Early last year, lawyers and real estate agents in Nuuk began fielding multiple inquiries from American buyers, according to six people familiar with the matter. The surge came in January 2025, around the time U.S. President Donald Trump renewed calls for greater U.S. control over Greenland.

Until then, foreign buyers had shown little interest in property in the town of about 20,000 residents.

"The most aggressive ones wanted to buy everything available on the market," said a Nuuk-based lawyer, who requested anonymity.

The sudden demand alarmed lawmakers, who were concerned that outside buyers could worsen Nuuk's already-tight housing market, three sources said. By February 2025, Greenland's government had tightened restrictions on foreign property purchases.

The episode fed into a broader legislative push to equip authorities with tools to scrutinize foreign capital.

Balancing Economic Needs with Political Risks

Trump's interest in Greenland has put lawmakers in a delicate position: attracting foreign investment to revive a stagnant economy while guarding against investors who may carry hidden political motives.

It remains unclear who the U.S. buyers were or whether they were linked to Trump's ambitions for the semi-autonomous Danish territory.

A foreign investment screening bill, formally submitted to parliament in October after years of development, was originally conceived in part as a safeguard against unwanted Chinese investment. However, three sources said the focus shifted after Trump renewed his interest in the island.

"We are very interested in working with American investors, but not in a way where they try to push certain political goals," said MP Aqqalu Jerimiassen of the Atassut party, part of Greenland's governing coalition.

Greenland has long sought to diversify its economy, particularly through mining. But limited infrastructure, including the absence of roads connecting its 72 towns, extreme weather conditions, and labor shortages have hampered efforts to attract sustained foreign capital.

Denmark has increased funding for infrastructure and development, while the European Union has proposed more than doubling its support. Even so, Greenland's economy grew just 0.2% in 2025, and public finances remain in deficit.

Screening Tools

First debated in November, the investment bill is due for further discussion in April and is expected to pass that month. It would require foreign investors to disclose the origin of their funds and allow authorities to block deals if political affiliations or intentions raise concerns.

"If someone is working for Trump, we will find out with this screening law. This is about our own security," Jerimiassen said.

The draft legislation does not name specific countries but calls for cooperation with allies, suggesting that American and European investors may face less scrutiny than their Chinese counterparts. It empowers authorities to review foreign investments deemed a threat to security or public order.

"The purpose of the law is to prevent foreign investments from posing a threat to Greenland's security or public order," the bill states, adding that it aims to enhance the security of "Greenland and its allies, including NATO member states".

Mandatory screening would apply to investments in critical infrastructure, IT and classified data systems, raw materials and mining, hydropower, and government-owned companies.

The law would apply only to areas under Greenland's jurisdiction and would not cover U.S. military activities, which fall under Denmark's authority.

China has said it has no intention of competing for influence in Greenland.

Ongoing Talks

Last month, Drew Horn, a former aide in Trump's first administration, announced plans for a multibillion-dollar data center in Greenland, a proposal some lawmakers see as underscoring the need for clear screening rules.

Greenland's government said it has not received any formal application related to the project.

Horn, who now leads an investment and advisory firm, told Reuters the project has no political ties and that he expects no difficulty meeting screening requirements.

"Greenland wants American capital, but we fear hidden political motives behind certain U.S. private investors," said one lawmaker, speaking anonymously.

Negotiations between Greenland and the United States over access and presence on the island are ongoing, with Trump continuing to call for "total access."

Business Minister Naaja Nathanielsen said the screening law was not drafted in response to U.S. interest and that American investment remains welcome. However, she added that if talks with Washington were to collapse, "then of course we would need to reevaluate our position. But we are not there yet".

Greenland's housing ministry said last year's property restrictions were precautionary measures designed to protect housing availability in Nuuk, not responses to specific data.