DigiKey to invest $100M in PDC and order management expansion

DigiKey is investing more than $100 million over the next 18 months to expand its global Product Distribution Center (PDC) and its Order Management System (OMS) to keep pace with the company’s growth.

DigiKey, the world’s leading distributor of electronic components and automation products, announced it will invest $100 million over the next 18 months in expanding its global Product Distribution Center in Thief River Falls, Minnesota, and its Order Management System. This expansion of capacity and automation is intended to support continued growth in demand for its industry-leading same-day shipping model.

Expansion at Record Pace

The investment will fund the next phases of DigiKey’s PDC build-out, including expanded high-volume picking capacity and advanced automated packaging processes. The first new automated packaging system is already on site and will go into operation later this year; additional automated multi-line packaging systems will be introduced in stages as part of the investment program.

The announcement follows a year of exceptional growth for the company. DigiKey is on track to grow by more than 50 percent in 2026 and expects continued double-digit growth in the coming year.

“Our customers choose DigiKey because they know we’re fast, and that we’ll still be fast tomorrow,” said Dave Doherty, CEO of DigiKey. “A $100 million investment says exactly that: we’re expanding capacity and automating where it matters, so that same-day shipping remains the rule and not the exception.”

Built for Future Scalability

The expansion follows the philosophy behind the company’s purpose-built Product Distribution Center: building capacity ahead of demand. DigiKey’s state-of-the-art PDC, expanded to 2.2 million square feet, opened in August 2022 and was designed for scalable growth, with extensive open space and much of the fourth floor reserved for future expansion.

New pick locations, order-fulfillment automation and improved packaging workflows will handle a growing share of order volume across product formats with greater speed and efficiency. Every investment at DigiKey is aligned with the overarching goal of sustainable growth.

“Simplification creates capacity, and capacity creates growth,” said Doherty. “We’re shifting resources from legacy projects to forward-looking capabilities and investing in what lies ahead, not just in what lies behind us.”

The investment strengthens DigiKey’s position as the world’s leading electronic components distributor, serving one million customers annually with more than 1.9 million products in stock and ready to ship the same day from the Product Distribution Center.

To learn more about DigiKey’s expansion and facilities, please visit DigiKey.com.