Denmark Commits $126M Annually to Modernize Defense IT, $1.34B to Strengthen Defense Combat Power

Denmark is injecting DKK 800 million ($126 million) annually in 2025 and 2026 to modernize Armed Forces IT systems and cyber defense, alongside a DKK 8.5 billion ($1.34 billion) program through 2033 to strengthen combat power, including training, new capabilities, and operational readiness.

The investment, financed through the Acceleration Fund, follows an analysis showing outdated infrastructure, weak IT management, and a structural budget gap. The report warned that without modernization, the Armed Forces risk falling short of NATO’s operational requirements.

“We must prioritize a rapid build-up of digital capacity,” said Minister of Defence Troels Lund Poulsen. “This investment will drive digital transformation and increase combat power.”

Lieutenant General Per Pugholm Olsen, head of the Defence Materiel and Procurement Board, said the funding will launch “a digital integration of military units and urgent strengthening of cyber defense.”

The analysis projects a total requirement of DKK 17.5 to 21 billion ($2.75 to $3.3 billion) to catch up on technical debt and secure long-term resilience. A decision on further allocations is pending.

One day earlier, the Ministry confirmed a separate DKK 8.5 billion ($1.34 billion) package to strengthen combat power through 2033, including new training programs, drone capacity for the Navy, and expanded Air Force operations.

Chief of Defence General Michael Wiggers Hyldgaard said, “Speed is crucial in building combat power, but we must also ensure long-term robustness.”