DigiKey announces expansion of its infrastructure with a $100 million investment over the next 18 months. The focus is to dramatically expanding their Thief River Falls distribution center and upgrading their order management systems to ensure their signature same-day fulfillment stays flawless as demand skyrockets.
The move comes on the heels of a massive year. DigiKey is on track to hit 50 percent growth in 2026 alone, and they are already projecting continued double-digit growth into next year.
To handle that surge, this new funding accelerates the next phase of their Product Distribution Center (PDC), specifically targeting high-volume picking and advanced automated packing. The first of these next-gen packing systems is already on the floor and goes live this year, with more multi-line automation rolling out in phases.
What’s impressive here is the foresight. When their massive 2.2 million-square-foot facility opened back in August 2022, they intentionally left large sections including most of the fourth floor, completely empty. The design philosophy has always been to build out capacity before it’s needed, rather than scrambling to catch up.
Ultimately, this expansion translates to new picking bays and faster order retrieval, allowing them to handle a wider mix of products with even greater efficiency.
With 1.9 million products in stock and a million customers relying on them annually, this isn’t just about scaling up. It’s about maintaining their edge as a global leader in electronic components and guaranteeing that when an order drops, it ships that same day.
Leadership Comment
“Our customers choose DigiKey because they know we’re fast and they know we’ll be fast tomorrow,” said DigiKey CEO Dave Doherty. “A $100 million commitment says exactly that: we’re expanding capacity and automating where it counts to keep same-day fulfillment the standard, not the exception.”
“Simplification creates capacity, and capacity creates growth,” said Doherty. “We’re redirecting resources from legacy work to future capabilities and investing in where we’re going, not just where we’ve been.”
To learn more about DigiKey’s expansion and facilities, CLICK HERE
