Datadog, known for its AI-powered observability and security solutions for cloud applications, has announced plans for a strategic expansion into the UK. The company intends to provide additional support for UK-based organisations amid growing cloud adoption and evolving data governance requirements. This expansion adds to Datadog’s global service network.
The planned UK data centre will allow customers and partners to store data locally. Hosting data within the UK is expected to reduce latency and streamline observability and security services for organisations operating in a single regional location. This option is particularly relevant for sectors subject to regulatory requirements, including government, finance, healthcare, and higher education.
Cloud adoption is increasing across regulated sectors in the UK. Surveys conducted by LSEG indicate that 82% of financial services firms operate in multi-cloud or hybrid environments. The public sector allocates over £26 billion annually to digital technologies, with an estimated 60% of its IT systems hosted in cloud infrastructures, according to GOV.UK. These figures reflect the sector’s adaptation to changes introduced by the Data (Use and Access) Act 2025.
Yanbing Li, Chief Product Officer at Datadog, noted: "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, pointed to the UK’s adoption of cloud and AI technologies and the associated governance and security considerations. The UK data centre will provide localised data processing capabilities to help organisations manage these technologies.
