DigiKey is expanding its capacity and automation to sustain growth for its same-day fulfillment model with a $100 million investment that will be over the next 18 months.
The investment will include the next phases of DigiKey’s product distribution center (PDC) expansion for high-volume picking capacity and automated packing operations. The Thief River Falls, Minnesota-based company said the first automated packing system is already on site and will be in use later in 2026.
DigiKey said the investment is part of its strategy of building capacity ahead of demand. That approach started with the 2.2 million-square-foot PDC that opened in August 2022 with space left for future expansion.
"Simplification creates capacity, and capacity creates growth," said Dave Doherty, CEO of DigiKey, in a statement. "We're redirecting resources from legacy work to future capabilities and investing in where we're going, not just where we’ve been."
Part of the investment will include new:
- Pick bays
- Order retrieval automation
- Expanded packing operations
DigiKey said it is on pace to grow more than 50% in 2026.
