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They can be found in and around their ship, the Marie Elena docked at the Imperial City Waterfront. They will attack if you get too close to their ship. Killing them when they attack is not considered murder, so local Imperial Guards will come and help. They do not respawn. The pirates in the Waterfront are led by Captain Gaston Tussaud and First Mate Malvulis.
Another group of pirates can be found in the Sea Tub Clarabella in Anvil, they will attack you on sight. Also, there are the ghostly Black Rock Pirates, who can be found in the deep caverns of Black Rock Caverns in the Colovian Highlands west of Chorrol. With the Thieves Den plugin you can have your own pirates, at Dunbarrow Cove, that will sail out and plunder once a week. You must defeat the old pirates and claim the Black Flag first.