Datadog launches Sydney AWS region to boost local compliance
This expansion enables Datadog's customers and partners in Australia to store and process data within the country, with the capability designed to support compliance in highly regulated sectors including government, banking, healthcare, and higher education.
Local capacity
The addition of the AWS Sydney Region comes as Australian organisations are expected to increase their cloud spending significantly. Rob Thorne, Vice President for Asia-Pacific and Japan (APJ) at Datadog, outlined the scale of this investment: "Australian organisations are on track to spend nearly A$26.6 billion on public cloud services alone in 2025. For organisations in highly regulated industries, it isn't just the cloud provider that needs to have local data storage capacity – it should be all layers of the tech stack."
The new local instance enables Datadog to deliver its observability and security platform with in-region data processing. This helps Australian organisations meet national requirements by ensuring that sensitive or regulated information remains within their borders.
Cloud agnosticism
Although the Datadog instance operates on AWS, its platform is designed to monitor infrastructures and applications running on any cloud provider, allowing flexibility for customers and partners across different deployment environments.
The platform's expansion in Australia follows Datadog's existing regions in North America, Asia, and Europe, building on its strategy to offer monitoring and security capabilities tailored for local compliance demands.
Commitment to Australia and New Zealand
Yanbing Li, Chief Product Officer at Datadog, explained the significance of the development for the region. "This milestone reinforces Datadog's commitment to supporting the region's advanced digital capabilities - especially the Australian Government's ambition to make the country a leading digital economy. With strong momentum across public and private sectors, our investment enhances trust in Datadog's unified and cloud-agnostic observability and security platform, and positions us to meet the evolving needs of agencies and enterprises alike."
In addition to the enhanced in-region capacity, the expansion is part of the company's wider strategy in Australia and New Zealand. Thorne stated, "This milestone reflects Datadog's priority to support these investments. It's the latest step in our expansion down under, and follows the continued addition of headcount to support our more than 1,100 A/NZ customers, as well as the recent appointments of Field CTO for APJ, Yadi Narayana, and Vice President of Commercial Sales for APJ, Adrian Towsey, to our leadership team."
Supporting compliance
The move to local data storage is intended to address increasing regulatory demands across various industries in Australia, where legislation often requires data related to citizens, clients, or patients to remain within national boundaries. Leveraging AWS in Sydney for its own systems, Datadog ensures that organisations can confidently meet legislative obligations without needing to change their cloud providers for core applications and infrastructure.
Datadog's observability and security platform provides real-time monitoring across infrastructure, applications, and cloud environments. Its software integrates functions such as infrastructure monitoring, application performance management, log analytics, user experience monitoring, and security into a consolidated offering.
Market context
Australian organisations across sectors are accelerating digital transformation projects, with cloud adoption at the core of enterprise IT strategies. The establishment of in-country data handling by global cloud and SaaS providers addresses significant barriers related to regulation and local auditing requirements, especially for sectors that handle regulated or sensitive information.
With local support, investment in staff, and alignment of its platform capabilities, Datadog aims to help customers and partners maintain compliance while adopting a range of public or private cloud technologies in line with their operational needs.
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