Why the U.S. Wants Greenland: Tech Billionaires See a Libertarian Utopia in the Arctic

From failed experiments near San Francisco to floating cities in international waters and headline-grabbing projects like Neom, tech billionaires have long dreamed of creating self-governing, innovation-first cities. Backed by deep pockets and a near-religious belief in radical deregulation, these projects aim to test new economic models—but few make it past the prototype stage.

Now, Greenland has become the next big idea.

Silicon Valley’s next “freedom” zone. President Donald Trump has revived his interest in acquiring Greenland—not just as a geopolitical prize, but as the potential home for a “Freedom City” envisioned by a cluster of Silicon Valley investors. The plan? A high-tech enclave built on libertarian ideals and minimal government interference, optimized for AI, spaceports, autonomous vehicles, micro-nuclear reactors, and high-speed transit.

Discussions. According to Reuters, discussions about the project have included PayPal co-founder Peter Thiel, Netscape co-founder Marc Andreessen, and former Virgin Hyperloop One CEO Shervin Pishevar—all of whom have ties to previous “startup city” efforts. 

Former U.S. ambassador to Denmark Ken Howery, a close Trump ally and associate of Tesla CEO Elon Musk, is said to play a pivotal role behind the scenes. While Howery hasn’t publicly confirmed any involvement, sources suggest he’s been instrumental in negotiations involving Greenland’s future—citing cultural and strategic alignments among the U.S., Japan, and Taiwan as part of the pitch.

Why Greenland? Three times the size of Texas but home to just 57,000 people, Greenland holds immense strategic value. It boasts vast reserves of rare earth minerals, a key U.S. military base, and increasing geopolitical interest due to its Arctic location. Trump has repeatedly insisted, “We have to have Greenland,” and hasn’t ruled out forceful acquisition if Denmark resists.

A recent visit by Vice President J.D. Vance to the Thule Air Base further inflamed tensions. His presence, accompanied by his wife, drew protests and was condemned by Greenland’s Prime Minister Jens-Frederik Nielsen, who called the visit “an insult to sovereignty.” Vance claimed Denmark has failed to defend the island against alleged Russian and Chinese activity—though he offered no evidence.

Denmark has declined to comment on speculation about an American tech-funded city project on the island.

A new doctrine. At its core, the Greenland project echoes a broader Silicon Valley movement to create startup cities or charter cities—self-contained urban environments with deregulated economies and private governance structures. Inspired by 19th-century expansionism, proponents frame this as a new wave of “manifest destiny”—only this time fueled by venture capital and technological ambition.

Pishevar called the Greenland initiative “the dawn of a new manifest destiny.” Dryden Brown, co-founder of the Praxis project, sees the island as a prototype for Martian colonization—a dress rehearsal for Musk’s space-faring aspirations. Brown has already visited Greenland and claims other companies have approached him to collaborate. On X, he wrote: “We must build a prototype of Terminus on Earth before departing for Mars.”

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Investors and power networks. Behind this vision is a tightly connected group of tech investors. Thiel, Andreessen, and Pishevar have backed Pronomos Capital, a firm funding experimental cities in countries open to alternative governance models. One of its key advisers, Patri Friedman—grandson of economist Milton Friedman—has confirmed that several of its projects are in negotiations with governments. One such effort, Próspera in Honduras, operates under a similar framework—though with rocky results and growing controversy.

Praxis, backed by Palantir co-founder Joe Lonsdale and OpenAI CEO Sam Altman, has raised more than $500 million for its own city-building initiatives—and may redirect some of that capital to Greenland. While Thiel denies any specific involvement in Greenland and Musk has stayed silent, the pattern of affiliations and interest in secessionist tech communities adds credibility to the idea.

What they’re offering Greenlanders. Despite Trump’s aggressive rhetoric, these investors are working on a softer pitch: that Greenland can become a global tech hub. At a recent Senate hearing, experts argued that the island’s coastline contains one of the largest concentrations of critical minerals in the world—resources becoming accessible as Arctic ice melts and new mining technologies advance.

Of course, there’s more. Investors are also dangling promises of massive job creation and foreign investment. The Freedom City vision includes AI research centers, clean energy infrastructure, high-speed transport, and even spaceports.

Some officials aligned with Trump’s camp have suggested replacing Danish subsidies with direct U.S. payments and economic incentives, hoping to win over skeptical locals.

The future. Yet Greenlanders remain wary. Critics fear cultural erosion, loss of sovereignty, and unchecked resource exploitation. With little transparency around governance, ownership, or environmental protections, many question who stands to benefit most.

Still, the idea persists—as a potent symbol of a broader ideological shift: One where private capital seeks parallel territories to operate with minimal regulation and maximal influence, reshaping the future in its image.

So far, though, these projects remain more ambition than reality—and their record of accomplishment doesn’t exactly inspire confidence.

Image | Mikhail Nilov

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