The founding of Nuuk as Godt-Haab occurred under the direction of Claus Paarss, the Danish royal governor of Greenland. Situated on the western coast of Greenland, Nuuk was envisioned as a fortified settlement intended to serve various strategic purposes: safeguard Danish interests, facilitate trade, and enable efficient governance over the territory. The name Godt-Haab translates literally to 'Good Hope,' reflecting a vision of prosperous engagement with both local populations and potential commercial opportunities.

In establishing the fort, Paarss aimed to bolster Danish presence against rival nations and enhance intercultural connections with the Inuit communities, who had lived in the region for centuries. The fortification served as a vital support system and trading hub, allowing for the collection of furs and introduction of European goods to Greenland. Moreover, the founding of Godt-Haab signified the beginning of a new era of expansion for Denmark, which sought to cement its authority in the Arctic regions as other European powers eyed similar ambitions.

Following its establishment, the settlement gradually evolved, with more structures and trade services being developed, helping to transition from a purely military installation to a more comprehensive civilian settlement. This was indicative of the broader colonial activities taking place across the globe during the 18th century.