Ahold Delhaize USA has begun construction on a major new distribution center in Burlington, North Carolina, marking one of the largest logistics investments in the region’s history. The state-of-the-art facility represents an $860 million investment and will support grocery brands across the East Coast, including Food Lion and other banners.

The facility will add more than one million square feet of fresh and frozen distribution capacity, roughly equivalent to 17 football fields, bolstering the retailer’s ability to move products efficiently and reliably to stores. Construction is underway, with operations expected to begin in 2029.

Strengthening a Regional Supply Chain Network

This Burlington facility will be the fourth distribution hub in North Carolina for Ahold Delhaize USA, joining existing centers in Salisbury, Butner, and Dunn. Together, these sites form one of the largest grocery supply chain networks on the East Coast, operating thousands of transportation assets and logging millions of miles annually.

The Burlington location, adjacent to major freight routes and rail lines, is positioned to serve markets throughout the southeastern and mid-Atlantic. Its proximity to interstates and existing logistics infrastructure is expected to enable faster restocking cycles. And reduce transportation costs for both brick-and-mortar stores and online grocery operations.

Job Creation and Local Impact

The project will create more than 500 full-time jobs as operations ramp up. With an initial 120 positions during construction and early operations. Local economic impact is projected at more than $10 million annually in payroll, supporting the Burlington community and surrounding areas.

Christopher Chung, CEO of the Economic Development Partnership of North Carolina, called the project “one of Burlington’s largest capital investments ever,” noting that it reflects years of collaboration among local government, workforce partners, and economic development organizations.

Automation, Efficiency and Future-Ready Operations

The Burlington facility will also incorporate modern automation and integrated logistics technology designed to increase throughput, enhance operational efficiency, and reduce handling time. These systems align with broader industry trends, enabling rapid replenishment and supporting the growing demand for grocery delivery and omnichannel services.

Automation is becoming increasingly common in large grocery distribution centers as retailers invest in systems that improve speed, efficiency, and order accuracy.

The facility will be equipped to process an estimated 135 million cases annually, making it the largest site in Ahold Delhaize USA’s U.S. network. The facility will handle a wide range of grocery products — including fresh produce, dairy, meat and seafood, and frozen foods — using advanced automation and material handling systems designed to improve efficiency, accuracy, and associate safety. Its design also supports temperature-controlled, high-volume flows for both in-store replenishment and online order fulfillment, reflecting the company’s push to meet growing consumer demand across multiple channels.

Additionally, construction of the Burlington distribution center is being led by The Tippmann Group, a firm specializing in temperature-controlled food and cold storage facilities. Automation and integrated logistics systems are being supplied by WITRON to support high-volume grocery distribution. The project is backed by a long-term lease financing arrangement funded by Blackstone Credit & Insurance. J.P. Morgan served as financial advisor on the transaction, with legal counsel provided by A&O Shearman and Milbank LLP. Local approvals and economic incentive packages from Burlington and Guilford County helped advance permitting and site development.

Economic and Strategic Significance

The new distribution center strengthens Ahold Delhaize USA’s supply chain flexibility and positions the company for long-term growth. For the region, the project reinforces North Carolina’s emergence as a logistics hub, attracting additional investment and supporting workforce development.

The Burlington facility is part of a broader trend among major grocery and retail chains to expand logistics footprints in strategic regions, improving operational efficiency while meeting growing consumer demand for rapid delivery and fresh food availability.

The Burlington distribution center is part of a growing wave of major investments in North Carolina. Another notable project is Novartis’ $771 million pharmaceutical expansion in Durham and Wake counties. Which will add roughly 700 jobs and increase biopharmaceutical production capacity in the state. Together, these projects highlight North Carolina’s emergence as a hub for both logistics and advanced manufacturing, strengthening the state’s economy and workforce opportunities.

Ahold Delhaize USA – Burlington Distribution Center Factsheet

Project Overview

Investment: $860 million

Size: 1 million+ sq. ft. (~17 football fields)

Location: Burlington, North Carolina

Facility Type: Fresh and frozen grocery distribution

Timeline

Groundbreaking: Feb 2026

Operations expected: 2029

Job Impact

Construction & early operations: 120 positions

Full operational staffing: 500+ jobs

Payroll impact: $10+ million annually

Project Team

Developer / Operator: Ahold Delhaize USA

Retail Brand Served: Food Lion

Construction Contractor: The Tippmann Group

Automation & Logistics Systems: WITRON

Financial Backing: Blackstone Credit & Insurance (triple-net lease financing)

Financial Advisor: J.P. Morgan

Legal Counsel: A&O Shearman; Milbank LLP

Local Approvals & Incentives: City of Burlington and Guilford County

Supply Chain & Operations

• Fourth distribution hub in North Carolina (joining Salisbury, Butner, and Dunn)
• Supports Food Lion and other Ahold Delhaize brands across the East Coast
• Advanced automation and integrated logistics systems for efficiency and speed

Regional & Strategic Significance

• Strengthens supply chain resilience and reduces distribution costs
• Enhances North Carolina’s role as a logistics and industrial hub
• Part of a broader trend of large-scale, technology-driven grocery distribution expansion