The company says the facility will cut down on the time it takes to ship prints and photo gifts to the East Coast.
Shutterfly currently prints digital photos and makes photo-bearing gifts at a plant in Hayward, California.
CEO Jeff Housenbold says about 60 percent of Shutterfly's customers are east of the Mississippi River.
He says shipments bound for New York can take two days longer than a California order.
To keep up with growing demand, Shutterfly has boosted manufacturing capacity by about 50 percent in each of the last five years.
The company says it expects to hire 233 workers in the area over three years. The company currently employs 260 people.