Expansion of U.S. Fulfillment Centers and Order Management Systems Boosts Capacity to Keep Pace with Record Growth DigiKey will invest more than $100 million over the next 18 months to expand and upgrade its global Product Distribution Centers (PDCs) and Order Management System (OMS) to support the company’s growth.
DigiKey, a leading global distributor of electronic components and automation products, today announced a $100 million investment over the next 18 months to expand its global Product Distribution Center in Thief River Falls, Minnesota, and upgrade its Order Management System. These capacity and automation upgrades are designed to meet rising market demand for its industry-leading same-day fulfillment model.
Expansion amid Record Growth This investment funds the next phase of DigiKey’s PDC expansion, adding high-volume sorting capacity and advanced automated packaging operations. The first new automated packaging system has been installed and will go live this year. Additional multi-line automated packaging systems will be rolled out in phases as part of this initiative.
The investment follows a year of rapid business expansion for DigiKey. The company is on track to achieve growth of over 50% in 2026 and expects double-digit growth to continue into the next year.
“Customers choose DigiKey because they know we are fast — and they know we will stay fast,” said Dave Doherty, DigiKey CEO.“This $100 million commitment demonstrates that we are expanding capacity and automation to make same-day fulfillment the standard, without exception.”
Built for Future Expansion The expansion continues the design philosophy behind DigiKey’s dedicated Product Distribution Center: build capacity ahead of demand growth. DigiKey’s state-of-the-art 2.2 million-square-foot PDC opened in August 2022. It was engineered for scalable growth with ample open space, including most of the fourth floor reserved for future expansion.
New sorting zones, order picking automation and expanded packaging operations will process growing order volumes across diverse product types with greater speed and efficiency. Every investment DigiKey makes centers on the ultimate goal of sustainable growth.
“Simplicity creates capacity, and capacity creates growth,” Doherty said. “We are reallocating resources from existing operations to build future capacity, investing in where we are going, not just where we have been.”
This investment further reinforces DigiKey’s position as a leading global electronic component distributor. The company serves more than one million customers annually and stocks over 1.9 million products available for same-day shipment from its Product Distribution Center.
Post time: Nov-09-2026