Great is the LORD and greatly to be praised
in the city of our God!
His holy mountain, beautiful in elevation,
is the joy of all the earth,
Mount Zion, in the far north,
the city of the great King.
Within her citadels God
has made himself known as a fortress. (Psalm 48:1-3)
This Psalm speaks of Mount Zion, which is another name for Jerusalem, as being in the far north. Jerusalem was near the center of Israel. After the kingdom split in two it was near the northern border of Judea but there is no way it could be considered to be in the far north.
It seems obvious that this doesn’t speak of the present city of Jerusalem but of a new Jerusalem which will exist in the future. Someday God will destroy the present earth and create a new heaven and a new earth. This new earth is described in chapters 21 and 22 of Revelation. He will create a new Jerusalem which will be the capital of the new earth. (Perhaps he has already created it and it is waiting in heaven for the time it will be brought down to earth.)
And I saw the holy city, new Jerusalem, coming down out of heaven from God, prepared as a bride adorned for her husband. (Revelation 21:2)
The Bible doesn’t say where on earth the city will be located but the Bible associates the direction north with being the seat of God’s power. Here is what Satan said when he rebelled against God.
You said in your heart,
“I will ascend to heaven;
above the stars of God
I will set my throne on high;
I will sit on the mount of assembly
in the far reaches of the north;
I will ascend above the heights of the clouds;
I will make myself like the Most High.” (Isaiah 14:13,14)
It appears that the new Jerusalem will be in the extreme north, in the area around the North Pole. I guess Santa Claus will have to find a new location for his toy factory.