Digikey is investing $100 million in the expansion of its logistics and order fulfillment operations
The distribution center in Minnesota covers approximately 204,400 m². Digi-Key expects growth of more than 50 percent in 2026 and continued double-digit growth in 2027.
Digikey plans to invest $100 million in its logistics and order fulfillment operations over the next 18 months. The funds will primarily go toward expanding the Product Distribution Center (PDC) in Thief River Falls, Minnesota, as well as the order management system. This move comes amid the electronics distributor’s current strong growth. According to Digi-Key, the company expects growth of more than 50 percent by 2026. For 2027, the company continues to anticipate double-digit growth.
Part of the investment is earmarked for additional picking capacity and the automation of packaging. The first new automated packaging system is already on site and is scheduled to begin operations in 2026. Additional automated multi-line packaging systems are set to follow gradually.
The product distribution center, which opened in 2022, covers approximately 204,400 m² and was designed from the outset to accommodate further expansion. According to the company, large areas—including parts of the fourth floor—were kept free for future expansions. New picking stations, greater automation of order fulfillment, and additional packaging technology are intended to handle larger order volumes in the future. According to Digi-Key, the company serves approximately one million customers annually and keeps more than 1.9 million products in stock that can be shipped on the same day the order is placed.
