Datadog, Inc., the AI-powered observability and security platform for cloud applications, has unveiled plans for a new UK data centre presence.
The move will support UK organisations as cloud adoption accelerates across regulated industries and as data governance and security requirements continue to evolve. The launch adds to Datadog’s existing service locations in North America, Asia and Europe.
The new UK data centre presence expands Datadog’s ability to support its customers and partners that require local storage of operational data in the UK. By keeping data in-region, organisations can also reduce latency and use Datadog’s full observability and security platform from a single UK-resident environment. This capability is crucial for companies operating in regulated environments such as government, banking, healthcare and higher education.
Cloud adoption continues to accelerate across regulated organisations in the UK. In financial services, 82% of firms surveyed by LSEG operate in multi-cloud or hybrid environments. In the public sector, annual digital technology spend exceeds £26 billion, with around 60% of IT systems running on cloud infrastructure, according to GOV.UK figures. Companies are also adapting to evolving UK data governance, including changes introduced under the Data (Use and Access) Act 2025, which has increased focus on where operational data is stored and processed.
“As more organisations modernise and run critical systems in the cloud and deploy AI, where operational data is stored has become a practical constraint, not just a compliance question,” said Yanbing Li, Chief Product Officer at Datadog. “This launch reflects our continued investment in building regional infrastructure to meet that reality. For the public sector and highly regulated industries such as financial services and healthcare, storing data locally is critical. The UK data centre presence gives customers a way to adopt modern observability and security without compromising in-region data storage.”
Steve Barrett, VP EMEA at Datadog added, “The UK is one of the fastest adopters of cloud and AI technologies in Europe. Organisations here are modernising quickly while facing increasing scrutiny around data governance and security. Cloud adoption is now the norm and AI is becoming a second wave on top of it – exponentially increasing operational complexity. Expanding our regional footprint now ensures organisations have trusted, local data processing as they scale cloud and AI securely and reliably.”
Datadog’s full range of products and services will be supported in the UK data centre, which is expected to open later in 2026.
