Surprise AZ Warehouse — ICE Regional Processing Center
Overview
In January 2026, ICE purchased a warehouse in Surprise, Arizona for more than $70 million. The facility is being retrofitted into a detention facility designed to hold around 550 people as one of 16 regional processing centers.
Key Details
- Purchase price: $70 million
- Prior valuation: ~$12 million (2023 assessment)
- Markup: ~500% overpayment (per Project Salt Box)
- Purchase date: January 2026
- Planned capacity: ~550 beds
- Facility type: Regional processing center
- Target completion: FY2026
The city of Surprise passed a 5-year ban on detention facilities in response (see surprise-az-ban), though it is unenforceable due to federal preemption.
Contractor Concerns
As of April 2026, reporting by KJZZ revealed that the company awarded the Surprise ICE warehouse contract does not have a background in detention work, raising questions about operational competence and detainee safety.
Context
Part of the $38.3 billion Detention Reengineering Initiative, funded by the OBBBA’s $45 billion ICE allocation. The Surprise warehouse is one of nine properties ICE had already purchased by early 2026, spending over $700 million total.