The Dominion bred the Jem'Hadar in hatcheries, something Damar felt made them appear expendable to their breeders, unlike their adversary, the Federation, who did not. (DS9: "Penumbra") The Dominion maintained a Jem'Hadar breeding facility on Sheva II. (DS9: "Once More Unto the Breach")
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Background information Edit
Portraying a Xindi-Insectoid hatchery was one of the first ideas conceived in the development of the episode "Hatchery". Commented Brannon Braga, "We always liked the idea of an insect hatchery." (Star Trek: Communicator issue 151, p. 32) A Xindi-Insectoid hatchery that appears in the episode was scripted, in the installment's final draft script, to be "a spacious, dimly-lit chamber."
In David Weddle and Jeffrey Lang's Star Trek: Deep Space Nine and Star Trek: Section 31 novel Abyss, Ethan Locken (β), a rogue Section 31 member, uses an abandoned hatchery to breed Jem'Hadar soldiers loyal to him.