DigiKey is investing $100 million over the next 18 months to expand its global distribution operations in Thief River Falls, Minnesota. The investment will increase warehouse capacity, introduce additional automation, and upgrade the company’s order management system as demand for electronic components continues to grow. For eeNews Europe readers, the DigiKey expansion is particularly relevant to engineers and purchasing teams that depend on fast component availability and reliable delivery. The investment is intended to help the distributor maintain same-day order fulfillment as its global customer base and order volumes grow. DigiKey Expansion Adds Automation Capacity The investment will fund the next stages of DigiKey’s product distribution center (PDC) expansion, including new high-volume picking systems and automated packing operations. The first new automated packing system is already on site and is expected to begin operating in 2026. Additional packing lines, picking bays, and automated order retrieval systems will be introduced gradually over the next 18 months. The DigiKey expansion comes during a period of particularly strong business growth. The company expects revenue growth of more than 50% in 2026, followed by continued double-digit growth in 2027. “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.” Building on Existing Infrastructure Rather than constructing an entirely new facility, DigiKey is making greater use of the infrastructure already available at its Minnesota headquarters. Its 2.2 million-square-foot distribution center expansion opened in August 2022. The facility was designed with future growth in mind, leaving substantial areas unused, including much of the fourth floor. These spaces will now accommodate additional automation and processing equipment, allowing the company to increase throughput without starting a new construction project. The investment also covers improvements to DigiKey’s order management system, which coordinates order processing and fulfillment. “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.” Supporting Global Component Supply The expansion comes as DigiKey continues to scale its international distribution business. The company serves approximately one million customers annually and stocks more than 1.9 million products available for same-day shipment. Its broader catalog includes more than 17.4 million components from over 3,000 manufacturers. For European electronics companies, additional distribution capacity could help support faster component sourcing and more predictable fulfillment, particularly when managing multiple suppliers or short development schedules. More information about the company’s operations is available on the DigiKey website . The post DigiKey Invests $100 Million in Distribution Expansion appeared first on eeNews Europe .