Datadog announces local UK storage for regulated industries
The company is targeting customers and partners with specific UK data residency, privacy, and security requirements
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Datadog is planning to expand into the UK with the launch of a new data center presence offering local storage for operational data.
According to the firm, the UK data center is expected to open later this year and comes in response to accelerating cloud adoption across regulated industries, along with evolving data governance and security requirements.
Keeping data in-region also allows organizations to reduce latency and use Datadog’s observability and security platform from a single UK-resident environment – crucial for companies operating in regulated environments such as government, banking, healthcare, and higher education, the firm said.
“As more organizations modernize 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.
“For the public sector and highly regulated industries such as financial services and healthcare, storing data locally is critical. The UK data center presence gives customers a way to adopt modern observability and security without compromising in-region data storage.”
Capitalizing on cloud adoption
Cloud adoption continues to accelerate among regulated organizations across the UK, with 82% of financial services firms surveyed by the London Stock Exchange Group (LSEG) now operating in multi-cloud or hybrid environments.
In the public sector, meanwhile, annual digital technology spend exceeds £26 billion, with around 60% of IT systems running on cloud infrastructure, according to GOV.UK figures.
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Crucially, companies are having to deal with 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.
“The UK is one of the fastest adopters of cloud and AI technologies in Europe. Organizations here are modernizing quickly while facing increasing scrutiny around data governance and security," said Steve Barrett, VP EMEA at Datadog.
"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 organizations have trusted, local data storage as they scale cloud and AI securely and reliably.”
The company already operates in North America, Asia and Europe, with plans for a new data center in Australia.
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Emma Woollacott is a freelance journalist writing for publications including the BBC, Private Eye, Forbes, Raconteur and specialist technology titles.
