The equipment and facilities in the distribution network include not only primary equipment such as transformers, circuit breakers, lightning arr-esters, capacitors, but also secondary equipment such as transfer switches, buttons, indicator lights, current and voltage meters. The total number of equipment types exceeds 200, and the average number of equipment in provincial areas exceeds 100 million. Equipment management is very arduous. The equipment management system in the power industry records the basic archive information of all these equipment, including equipment nameplate, equipment type, equipment operation mode, and geographic information. With the rapid development of power applications, the two-dimensional information description in device management systems cannot meet the needs of more complex power applications. The spatial description and layout of device objects is the foundation for the next step of power business applications. To address this issue, this paper proposes a layout and optimization algorithm for the digital twin object space of distribution network facilities, which visualizes distribution network equipment and facilities, and describes the three-dimensional features of the equipment using point cloud description methods, providing a spatial layout and optimization method for the equipment. The method proposed in this paper has been applied and verified in actual power production and maintenance business, improving the efficiency of power operation and maintenance work.