ICE Shifts Strategy: Buying Existing Detention Facilities After Warehouse Renovation Backlash

U.S. Immigration and Customs Enforcement (ICE) is in active negotiations to acquire pre-built immigration detention facilities from its largest vendors, including CoreCivic and GeoGroup. This shift comes as local opposition derails ICE’s previous plan to rapidly renovate warehouses into large-scale detention spaces.

Why This Matters

The Department of Homeland Security (DHS) seeks to own its detention facilities, marking a significant departure from its current model, which relies heavily on leased spaces. Earlier this year, ICE’s leased network held a peak population of over 70,000 detainees.

CoreCivic and GeoGroup in Talks to Sell Facilities

CoreCivic, which leases roughly one-quarter of ICE’s immigrant detention beds, is in discussions to sell some of its "turnkey" facilities to the agency. On an investor call on Thursday, CoreCivic CEO Patrick Swindle outlined the company’s broader vision:

"The broader vision is to develop a nationwide network that consolidates populations in relatively larger facilities that allows them to be able to service the needs of the entire country."

Similarly, GeoGroup, another of ICE’s largest vendors, is exploring the sale of multiple detention facilities to ICE. GeoGroup currently operates about 25,000 beds for ICE. In a statement, GeoGroup Chairman and CEO George Zoley confirmed the ongoing discussions:

"I can respectfully acknowledge that we have been in discussions with ICE regarding the potential sale of multiple facilities subject to mutual agreement on price and our continued management of those facilities under long-term support services contracts."

Zoley noted that the negotiations are fluid and that sales could finalize in the company’s second or third quarter of this year.

ICE’s Failed Warehouse Renovation Plans

This new purchasing strategy follows ICE’s abandoned efforts to renovate 11 warehouses into large-scale detention centers. None of these facilities are currently operational. The plans faced significant resistance from:

• Republican elected officials who blocked purchase agreements
• Local activists and legal challenges
• Environmental policy lawsuits

Two warehouse projects were advancing toward operation, but legal action has halted progress in Hagerstown, Maryland. Additionally, a potential multi-thousand-bed facility in Surprise, Arizona received a "stop work order" on its renovation project, followed by litigation from the state government.

There are also discussions about selling some of the already-purchased warehouses, according to a source familiar with the negotiations.

Statements from Key Figures

"At this time, the warehouse project has been paused, and DHS is evaluating how to proceed with this initiative to increase in consolidating detention capacity." — George Zoley, GeoGroup Chairman and CEO

GeoGroup also revealed that ICE is looking to purchase 10 turnkey facilities. As of now, ICE operates approximately 200 detention facilities across the country, including local jails secured through partnership agreements, according to ICE’s detention data.

Trump Administration’s Detention Capacity Goal

The Trump administration has publicly stated its objective to expand detention capacity to 100,000 beds.

DHS Remains Silent on Negotiations

When reached for comment, the Department of Homeland Security did not immediately respond.