Photo: DigiKey
THIEF RIVER FALLS, Minn. (KFGO) – DigiKey announced Monday a multi-year expansion of its global product distribution center in Thief River Falls, anchoring an investment expected to exceed $100 million over the next 18 months.
The electronics distribution giant is adding automated order retrieval systems, expanded picking capacity and advanced packing operations to keep pace with rapid company growth. Upgrades are also underway for the firm’s global order management technology.
The project expands on the company’s 2.2 million-square-foot facility that opened in August 2022, which was originally built with open space on its fourth floor to accommodate future scale. DigiKey said its first new automated packing system is already on-site and will become operational in the coming months, with additional automation phased in over several years.
The investment comes during a period of record growth. DigiKey projects revenue to increase by more than 50% in 2026, representing $1.5 billion in incremental growth this year and an estimated $1 billion addition in 2027.
“This community built DigiKey, and this investment is about building DigiKey for the next decade, not just the next quarter,” said Dave Doherty, chief executive officer of DigiKey. “We’re all in on growth for our customers around the world, and for the people who make it happen every day right here in Thief River Falls.”
Headquartered in northwest Minnesota, DigiKey distributes more than 17.4 million electronic components and automation products to over 1 million customers worldwide.
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