Carpenter Ants get their name because they build their nests in wood. Carpenter ants do not eat the wood they remove during their nest-building activities, but deposit it outside entrances to the colony. Carpenter ants build nests anywhere they can find water and moldy or damp wood, such as tree stumps, firewood or in the plants around your house. Carpenter ants also build nests inside, usually entering buildings through wet, damaged wood, although it isn’t uncommon for them to adapt to drier environments. Ants dig tunnels inside the wood which can weaken and damage the wood that keeps the house standing. The damage can also be expensive to fix.