Electronic components and automation products distributor DigiKey announced Oct. 14 that it will invest $100 million over 18 months in its Thief River Falls, MN, global product distribution center and order management system.

The investment will add picking bays, automated order retrieval and packing capacity to support same-day fulfillment. The first new automated packing system is onsite and scheduled to begin operating this year, with additional systems phased in afterward.

DigiKey — No. 6 on MDM’s 2026 Top Distributors List for Electronics — said it is on pace to grow more than 50% in 2026 and expects double-digit growth next year.

“Simplification creates capacity, and capacity creates growth,” CEO Dave Doherty said.

The project builds on a 2.2 million-square-foot distribution center expansion opened in August 2022. That facility included space reserved for future growth, including much of its fourth floor. DigiKey stocks more than 1.9 million products for same-day shipment.

The capacity investment follows substantial product and supplier additions. In a February update, DigiKey reported adding more than 108,000 stocking parts for immediate shipment during 2025. Overall, it added more than 1.6 million products to its system and 364 suppliers across its core business, Marketplace and Fulfilled by DigiKey programs.

Fourth-quarter additions alone included 25,653 stocking parts and 89 suppliers. Among the new suppliers were Synaptics, which provides AI products, and ABB Installation Products, which supplies cabinet infrastructure and electrical protection products.

DigiKey’s broader offering spans more than 17.4 million components from over 3,000 manufacturers. The company serves more than 1 million customers annually.