In order to accommodate 25,000 immigrants, the United States Navy plans to set up detention camps in Alabama.
Other possible locations include the states of California and Arizona, Pentagon Spokesman Robert Manning confirmed in a statement.
The U.S. military is considering housing projects across the country to house immigrants who are held before U.S. courts waiting for the decision on their fate.
The plan would be executed by building accommodation for 5000 people in 60 days.
U.S. President Donald Trump previously directed the Pentagon to share the burden of accommodating immigrants apprehended by border patrol agents in recent months.
In April, the Department of Justice told the Department of Homeland Security that all immigrants caught near the border should be tried before being released or deported.
The move is highly criticised as children of the immigrants waiting trial are reportedly forcefully separated from their parents.
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Trump, however, has now issued an executive order allowing the children to stay with their parents, and the U.S. Congress has vowed to patch up the country' s immigration laws to resolve the issue.
Trump administration was earlier condemned for heightened tensions over the treatment of immigrants at the southern border and tougher immigration policies.