The announcement follows a period of strong business growth, with DigiKey projecting growth of more than 50% in 2026
DigiKey has announced an investment of $100 million over the next 18 months to expand its product distribution centre in Thief River Falls, Minnesota, US, and upgrade its order management system.
The investment will increase high-volume picking capacity and introduce advanced automated packing operations to support growing demand for the company’s same-day order fulfilment services. The first new automated packing system has already arrived at the facility and is expected to enter operation in 2026. Additional multi-line packing automation will be introduced in phases.
The announcement follows a period of strong business growth, with DigiKey projecting growth of more than 50% in 2026 and continued double-digit growth in the following year.
“Our customers choose DigiKey because they know we’re fast and they know we’ll be fast tomorrow,” said Dave Doherty, CEO of DigiKey. He added that the investment would expand capacity and increase automation to maintain same-day fulfilment as a standard service.
The investment builds on DigiKey’s strategy of expanding infrastructure ahead of anticipated demand. The company’s 2.2-million-square-foot product distribution centre expansion opened in August 2022, with provisions for future growth, including unused space on the fourth floor.
The latest expansion will add new picking bays, order retrieval automation and enhanced packing operations. These upgrades are intended to improve the speed and efficiency of processing orders across different product sizes and formats.
“Simplification creates capacity, and capacity creates growth,” Doherty said, highlighting the company’s focus on redirecting resources from legacy operations towards future capabilities.
DigiKey serves approximately one million customers annually and stocks more than 1.9 million products for same-day shipment from its product distribution centre. The new investment is expected to strengthen its fulfilment capabilities as demand for electronic components continues to grow.
