diff --git a/docker-compose.yml b/docker-compose.yml
index 4c0454f05..4f15f180f 100644
--- a/docker-compose.yml
+++ b/docker-compose.yml
@@ -157,21 +157,19 @@ services:
       placement:
         constraints:
           - node.hostname==postgres
-  datadog-agent:
-    image: datadog/agent
-    restart: always
-    networks:
-      user-net:
+  otel-collector:
+    image: otel/opentelemetry-collector-contrib:0.72.0
+    command: [--config=/etc/otel-collector-config.yaml]
     volumes:
+      - ./extras/otel/otel-collector-config.yaml:/etc/otel-collector-config.yaml
       # Pull docker stats
       - /var/run/docker.sock:/var/run/docker.sock:ro
+    restart: always
+    networks:
+      user-net:
     environment:
-      - DD_APM_ENABLED=true
-      - DD_APM_NON_LOCAL_TRAFFIC=true
-      - DD_SITE=datadoghq.eu
       - DD_API_KEY=${DD_API_KEY}
       - DD_ENV=${DD_ENV}
-      - DD_CONTAINER_LABELS_AS_TAGS={"project.name":"project_name"}
     deploy:
       placement:
         constraints:
diff --git a/extras/otel/otel-collector-config.yaml b/extras/otel/otel-collector-config.yaml
new file mode 100644
index 000000000..0b1526a8d
--- /dev/null
+++ b/extras/otel/otel-collector-config.yaml
@@ -0,0 +1,63 @@
+receivers:
+  otlp:
+    protocols:
+      grpc:
+  # The hostmetrics receiver is required to get correct infrastructure metrics in Datadog.
+  hostmetrics:
+    collection_interval: 10s
+    scrapers:
+      paging:
+        metrics:
+          system.paging.utilization:
+            enabled: true
+      cpu:
+        metrics:
+          system.cpu.utilization:
+            enabled: true
+      disk:
+      filesystem:
+        metrics:
+          system.filesystem.utilization:
+            enabled: true
+      load:
+      memory:
+      network:
+      processes:
+  # The prometheus receiver scrapes metrics needed for the OpenTelemetry Collector Dashboard.
+  prometheus/otel:
+    config:
+      scrape_configs:
+      - job_name: 'otelcol'
+        scrape_interval: 10s
+        static_configs:
+        - targets: ['0.0.0.0:8888']
+  docker_stats:
+    endpoint: unix:///var/run/docker.sock
+
+processors:
+  batch:
+  attributes:
+    actions:
+      - key: env
+        value: $(env:DD_ENV)
+        action: insert
+
+exporters:
+  datadog:
+    api:
+      site: datadoghq.eu
+      key: ${env:DD_API_KEY}
+service:
+  pipelines:
+    traces:
+      receivers: [otlp]
+      processors: [attributes, batch]
+      exporters: [datadog]
+    logs:
+      receivers: [otlp]
+      processors: [attributes, batch]
+      exporters: [datadog]
+    metrics:
+      receivers: [hostmetrics, prometheus/otel, docker_stats, otlp]
+      processors: [batch]
+      exporters: [datadog]