Canada is stepping up its Arctic strategy through major domestic investments and strengthened partnerships with Nordic allies, as Prime Minister Mark Carney announced a multi-billion-dollar plan to reinforce northern infrastructure and security while deepening cooperation across the High North.

Speaking at a military hangar in Yellowknife, Northwest Territories, Carney unveiled a $35-billion investment in Arctic defence and northern infrastructure, aimed at strengthening Canada’s sovereignty and operational capabilities across the region.

The majority of the funding—about $32 billion—will modernize key forward operating locations in Yellowknife, Inuvik, Iqaluit and Goose Bay, including upgrades to airfields, hangars, ammunition storage, fuel facilities and logistics infrastructure.

These upgrades are intended to allow the Canadian Armed Forces to operate more effectively in the Arctic and eventually support the deployment of Canada’s new F-35 fighter jets in the region.

The government is also allocating $2.7 billion to establish four new remote operating hubs across the North, designed to allow rapid deployment of military forces and improve Canada’s ability to monitor and respond to activity in the Arctic, including search and rescue.

Beyond defence infrastructure, the investment includes funding for northern transportation and logistics projects, including the Mackenzie Valley Highway, which would improve connectivity between Yellowknife and Inuvik and strengthen access to remote communities and strategic sites.

Officials say the move reflects growing geopolitical competition in the Arctic, where climate change is opening new shipping routes and increasing global interest in natural resources and trade corridors.

Expanding Canada–Nordic cooperation

Shortly after announcing the Arctic investment, Carney travelled to Norway, where he observed the NATO-led Exercise Cold Response, a large-scale military exercise held above the Arctic Circle. The biennial exercise brings together roughly 25,000 troops from 14 allied nations to train in Arctic land, air and sea operations.

During the visit, Carney met with Norwegian Prime Minister Jonas Gahr Støre and participated in a Canada-Nordic summit with leaders from Norway, Sweden, Denmark, Finland and Iceland.

The discussions focused not only on defence and Arctic security but also on expanding economic and technological cooperation across the region.

Alongside defence collaboration, Canada and the Nordic countries are seeking to deepen partnerships in energy security, critical mineral supply chains, and trade, as well as emerging technologies such as space communications, advanced security systems, and artificial intelligence (AI).

The visit also included discussions on clean energy, investment, aerospace cooperation and innovation, highlighting the broader economic potential of Arctic collaboration.

A broader Arctic strategy

Together, the domestic infrastructure investment and expanded Nordic partnerships reflect a broader shift in Canada’s Arctic strategy—one that combines stronger national capabilities with deeper alliances among northern nations.

The Arctic accounts for roughly 40 percent of Canada’s landmass but is home to only about 150,000 people, making infrastructure and connectivity critical for both sovereignty and economic development.

As geopolitical competition grows and Arctic access expands due to climate change, Canadian officials say strengthening both northern infrastructure and international cooperation will be key to ensuring the region remains secure, prosperous and sustainable in the decades ahead.

See the joint statement on Strategic Cooperation between Canada and the Kingdom of Norway.

Sources: Prime Minister of Canada, CTVNews