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.

Operator, Contract, and Capacity (Updated May 2026)

The federal government selected GardaWorld Federal Services (a Canadian-parented federal-contracting firm) on March 11, 2026 to renovate and operate the facility. The contract is worth $313 million base, up to $704 million if extended through February 2029. GardaWorld has no prior ICE detention experience (KJZZ, Apr. 1, 2026) and is the same contractor network associated with Camp East Montana / “Alligator Alcatraz” at Fort Bliss.

Capacity follows DHS’s standard warehouse-conversion split: ~550 in legal filings, up to 1,500 in documented operational planning. DHS reportedly agreed to pay the City of Surprise $300,000 as compensation related to the facility.

Stop-Work Order and Litigation (April–May 2026)

• ~April 22, 2026: A federal stop-work order was issued on the GardaWorld Surprise contract (modifications P00001 / P00002), halting conversion work — at least two days before the AG lawsuit (Project Saltbox).
• April 24, 2026: Arizona AG Kris Mayes filed Arizona v. Mullin (D. Ariz.) to block the conversion, the fourth state in the multi-state NEPA challenge cluster (after MD, MI, NJ). Core claim: DHS/ICE skipped NEPA environmental review and the facility sits across the street from Rinchem Co.’s 123,000 sq ft hazardous-chemical (semiconductor) storage, an RMP-regulated site under the Clean Air Act, with no risk assessment for a captive population.

See surprise-az-ice-warehouse-fight for full litigation detail.

Contractor Concerns

As of April 2026, KJZZ reporting confirmed GardaWorld 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.

Sources

• The company awarded Surprise ICE warehouse contract doesn’t have background in detention work — KJZZ (Apr 1, 2026)
• Federal government selects controversial company to run Surprise ICE facility — AZ Family (Mar 11, 2026)
• ICE awards $313M contract to turn Surprise warehouse into migrant detention site — Tucson Sentinel (Mar 12, 2026)
• AG Mayes Sues to Block Proposed ICE Detention Facility in Surprise — AZ AG (Apr 24, 2026)
• Stop work order issued for Surprise ICE facility contractor — AZPM (Apr 27, 2026)
• Work on $313M Contract to Convert ICE Warehouse in Surprise Was Ordered Stopped Before State Sued — Project Saltbox
• Arizona among states where ICE is buying huge warehouses — Tucson.com
• ICE’s Warehouse Purchases Herald New Model — American Immigration Council