Termites, on the other hand, don't usually thrive in mulch piles. Termites are most commonly found deep below in damp conditions. Mulch usually dries out to the point that termites can't form a nest in it. Termites can only live in mulch piles if they are kept continually moist. Also, you need to know about the 5 Best Mulch for Preventing Termites (Forever).