Former U.S. Detention Center Operator Pivots to AI Worker Camps Amid Data Center Boom

The rapid expansion of AI data centers across the United States is creating a lucrative new market for housing thousands of construction workers. Notably, private operators with a controversial history in immigration management are now exploring opportunities in this space.
To quickly deploy infrastructure in remote areas, developers are increasingly relying on temporary communities known as "man camps." This model originally emerged from housing workers in isolated oil fields. For example, in Dickens County, Texas, a former Bitcoin mining facility is being converted into a 1.6-gigawatt data center, with construction workers living in modular dormitories equipped with gyms, laundries, and even steakhouse-style dining.
Target Hospitality has already signed a $132 million contract to build and operate such camps. The company's Chief Commercial Officer, Troy Schrenk, described the data center construction boom as "the largest and most viable project pipeline in history."
Target Hospitality's background has drawn public attention. The company owns and operates the Dilly Immigration Processing Center in Texas, which houses families detained by U.S. Immigration and Customs Enforcement (ICE). Court documents have previously alleged poor conditions at the center, including moldy food and neglect of sick children's medical needs.
The seamless shift from "detention centers" to "AI worker dormitories" reflects the complex capital logic behind resource-intensive infrastructure development, while also raising concerns about the management standards and human rights protections of such closed camps.
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The rapid expansion of AI data centers across the United States is creating a lucrative new market for housing thousands of construction workers. Notably, private operators with a controversial history in immigration management are now exploring opportunities in this space.
To quickly deploy infrastructure in remote areas, developers are increasingly relying on temporary communities known as "man camps." This model originally emerged from housing workers in isolated oil fields. For example, in Dickens County, Texas, a former Bitcoin mining facility is being converted into a 1.6-gigawatt data center, with construction workers living in modular dormitories equipped with gyms, laundries, and even steakhouse-style dining.
Target Hospitality has already signed a $132 million contract to build and operate such camps. The company's Chief Commercial Officer, Troy Schrenk, described the data center construction boom as "the largest and most viable project pipeline in history."
Target Hospitality's background has drawn public attention. The company owns and operates the Dilly Immigration Processing Center in Texas, which houses families detained by U.S. Immigration and Customs Enforcement (ICE). Court documents have previously alleged poor conditions at the center, including moldy food and neglect of sick children's medical needs.
The seamless shift from "detention centers" to "AI worker dormitories" reflects the complex capital logic behind resource-intensive infrastructure development, while also raising concerns about the management standards and human rights protections of such closed camps.
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