As global powers increase their influence in the Caribbean, the Virgin Islands anchors American presence and regional stability.
Turning Strategic Value Into Economic Growth The superpower of the Virgin Islands opens the door to real economic transformation through: • Digital infrastructure and cloud services • Subsea cable landings and data center development • Renewable energy and microgrid innovation • Logistics and nearshoring support • Workforce training in artificial intelligence, cybersecurity, and clean technology • Tourism diversification based on culture, sustainability, and innovation These opportunities can help the Virgin Islands evolve from a tourism-dependent economy into a diversified and globally connected hub.
Conclusion: A Moment We Cannot Miss The superpower of the U.S. Virgin Islands has always been our location.
Interests in a Competitive Region Even without a large naval base today, the U.S. Virgin Islands remain an important location for maritime domain awareness, border security, disaster response, and the protection of telecommunications and energy infrastructure. Our geographic position has always been our most valuable asset.
Why Our Strategic Location Matters Even More Today What made the Virgin Islands valuable in 1917 makes us even more valuable in 2025. This piece is part of the “Virgin Islands at a Crossroads” series, which invites Virgin Islanders at home and abroad to join the conversation on building a resilient, diversified future.
Protecting the Panama Canal: The Superpower of the U.S. Virgin Islands
History makes one point clear. Purchasing the Virgin Islands eliminated that risk and strengthened America’s presence in the Western Hemisphere.
This was no accident of history. It was a deliberate response to two defining strategic concerns. 1. Preventing German Expansion in the Caribbean During World War I, U.S. leaders feared that Germany might acquire the Virgin Islands from Denmark and establish a base dangerously close to both the Panama Canal and the U.S. East Coast. The Panama Canal, opened just three years earlier, had instantly become the backbone of American military mobility and global trade. 2. A Forward Position for U.S. At the crossroads of the Americas, the Caribbean Sea, and the Atlantic Ocean, our islands occupy one of the most strategically significant positions on the planet. St. Thomas, with its deep and naturally protected harbor, offered an ideal location for refueling, naval operations, and maritime surveillance.
Our defining strength has always been our location.
A Strategic Advantage Recognized Since 1917
In 1917, the United States purchased the Virgin Islands from Denmark for $25 million in gold. The United States recognized that securing the surrounding Caribbean region was crucial to its defense and commercial interests.
As global markets shift, supply chains reorganize, and nations compete for technological leadership, the strategic value of the Virgin Islands is more relevant than ever in our history.
A Maritime Crossroads for Modern Trade The Virgin Islands sit along major shipping routes that connect the Gulf Coast, the Eastern Seaboard, the Panama Canal, and South America.
The Virgin Islands are again at a crossroads. The question we face is not whether we possess strategic value. It is whether we will use this superpower to build a resilient, competitive, and prosperous economy for generations to come.
A Growing Digital Gateway The modern economy flows through fiber-optic cables rather than shipping containers. The Caribbean is becoming an essential digital corridor that connects the Americas, Europe, and West Africa. As companies nearshore and reshore supply chains to reduce risks and shorten delivery times, our Territory can emerge as a logistics, storage, and maritime services hub within a U.S. jurisdiction.
With deep-water conditions and U.S. regulatory stability, the Virgin Islands are well-positioned to host subsea cable landings, data centers, cloud connectivity, and cybersecurity operations. This creates a pathway to high-wage technology careers and a new pillar of economic development.
A Platform for Clean Energy Leadership The Territory has abundant solar resources and is receiving significant federal investment. This combination creates an opportunity to build one of the most reliable and resilient clean energy systems in the Caribbean. A modern power grid strengthens economic competitiveness and supports technology-driven industries.
