diff --git a/playbooks/roles/xqueue/defaults/main.yml b/playbooks/roles/xqueue/defaults/main.yml
index 510d69f28f8..aa51e3f644f 100644
--- a/playbooks/roles/xqueue/defaults/main.yml
+++ b/playbooks/roles/xqueue/defaults/main.yml
@@ -61,6 +61,7 @@ XQUEUE_CONSUMER_NEWRELIC_APPNAME: "{{ COMMON_ENVIRONMENT }}-{{ COMMON_DEPLOYMENT
 
 XQUEUE_CONSUMER_DATADOG_APPNAME: "edx-xqueue_consumer"
 XQUEUE_DATADOG_APPNAME: "edx-{{ xqueue_service_name }}"
+XQUEUE_DATADOG_ENABLE: "{{COMMON_ENABLE_DATADOG and COMMON_ENABLE_DATADOG_APP}}"
 
 # Set the number of gunicorn front end workers explicitely for xqueue
 XQUEUE_WORKERS: !!null
diff --git a/playbooks/roles/xqueue/tasks/main.yml b/playbooks/roles/xqueue/tasks/main.yml
index 8fc4676a1eb..2f06588f936 100644
--- a/playbooks/roles/xqueue/tasks/main.yml
+++ b/playbooks/roles/xqueue/tasks/main.yml
@@ -75,7 +75,7 @@
     - install:app-requirements
 
 - name: "Install Datadog APM requirements"
-  when: COMMON_ENABLE_DATADOG and COMMON_ENABLE_DATADOG_APP
+  when: XQUEUE_DATADOG_ENABLE
   pip:
     name:
       - ddtrace
diff --git a/playbooks/roles/xqueue/templates/xqueue.conf.j2 b/playbooks/roles/xqueue/templates/xqueue.conf.j2
index 6ccf03114d3..0e26cff84ad 100644
--- a/playbooks/roles/xqueue/templates/xqueue.conf.j2
+++ b/playbooks/roles/xqueue/templates/xqueue.conf.j2
@@ -6,7 +6,7 @@
 {% set executable = xqueue_venv_bin + '/gunicorn' %}
 {% endif %}
 
-{% if COMMON_ENABLE_DATADOG and COMMON_ENABLE_DATADOG_APP %}
+{% if XQUEUE_DATADOG_ENABLE %}
 {% set executable = xqueue_venv_bin + '/ddtrace-run ' + executable %}
 {% endif -%}
 
@@ -17,7 +17,7 @@ directory={{ xqueue_code_dir }}
 
 # Copied DD_TRACE_LOG_STREAM_HANDLER config from edx_django_service. This is required
 # to disable Datadog trace debug logging.
-environment={% if COMMON_ENABLE_NEWRELIC_APP %}NEW_RELIC_APP_NAME={{ XQUEUE_NEWRELIC_APPNAME }},NEW_RELIC_LICENSE_KEY={{ NEWRELIC_LICENSE_KEY }},{% endif -%}{% if COMMON_ENABLE_DATADOG and COMMON_ENABLE_DATADOG_APP %}DD_DJANGO_USE_HANDLER_RESOURCE_FORMAT=true,DD_TAGS="service:{{ XQUEUE_DATADOG_APPNAME }} version:{{ app_version }}",DD_TRACE_LOG_STREAM_HANDLER=false,DD_PROFILING_ENABLED=true,DD_DATA_STREAMS_ENABLED=true,{% endif -%}PID=/var/tmp/xqueue.pid,PORT={{ xqueue_gunicorn_port }},ADDRESS={{ xqueue_gunicorn_host }},LANG={{ XQUEUE_LANG }},DJANGO_SETTINGS_MODULE=xqueue.{{ XQUEUE_SETTINGS }},XQUEUE_CFG={{ COMMON_CFG_DIR }}/xqueue.yml
+environment={% if COMMON_ENABLE_NEWRELIC_APP %}NEW_RELIC_APP_NAME={{ XQUEUE_NEWRELIC_APPNAME }},NEW_RELIC_LICENSE_KEY={{ NEWRELIC_LICENSE_KEY }},{% endif -%}{% if XQUEUE_DATADOG_ENABLE %}DD_DJANGO_USE_HANDLER_RESOURCE_FORMAT=true,DD_TAGS="service:{{ XQUEUE_DATADOG_APPNAME }} version:{{ app_version }}",DD_TRACE_LOG_STREAM_HANDLER=false,DD_PROFILING_ENABLED=true,DD_DATA_STREAMS_ENABLED=true,{% endif -%}PID=/var/tmp/xqueue.pid,PORT={{ xqueue_gunicorn_port }},ADDRESS={{ xqueue_gunicorn_host }},LANG={{ XQUEUE_LANG }},DJANGO_SETTINGS_MODULE=xqueue.{{ XQUEUE_SETTINGS }},XQUEUE_CFG={{ COMMON_CFG_DIR }}/xqueue.yml
 
 stdout_logfile={{ supervisor_log_dir }}/%(program_name)s-stdout.log
 stderr_logfile={{ supervisor_log_dir }}/%(program_name)s-stderr.log
diff --git a/playbooks/roles/xqueue/templates/xqueue_consumer.conf.j2 b/playbooks/roles/xqueue/templates/xqueue_consumer.conf.j2
index c9e2db57bbd..46e661877f8 100644
--- a/playbooks/roles/xqueue/templates/xqueue_consumer.conf.j2
+++ b/playbooks/roles/xqueue/templates/xqueue_consumer.conf.j2
@@ -6,7 +6,7 @@
 {% set executable = xqueue_venv_bin + '/django-admin run_consumer' %}
 {% endif %}
 
-{% if COMMON_ENABLE_DATADOG and COMMON_ENABLE_DATADOG_APP %}
+{% if XQUEUE_DATADOG_ENABLE %}
 {% set executable = xqueue_venv_bin + '/ddtrace-run ' + executable %}
 {% endif -%}
 
@@ -17,7 +17,7 @@ directory={{ xqueue_code_dir }}
 
 # Copied DD_TRACE_LOG_STREAM_HANDLER config from edx_django_service. This is required
 # to disable Datadog trace debug logging.
-environment={% if COMMON_ENABLE_NEWRELIC_APP %}NEW_RELIC_STARTUP_TIMEOUT=10,NEW_RELIC_APP_NAME={{ XQUEUE_CONSUMER_NEWRELIC_APPNAME }},NEW_RELIC_LICENSE_KEY={{ NEWRELIC_LICENSE_KEY }},{% endif -%}{% if COMMON_ENABLE_DATADOG and COMMON_ENABLE_DATADOG_APP %}DD_DJANGO_USE_HANDLER_RESOURCE_FORMAT=true,DD_TAGS="service:{{ XQUEUE_CONSUMER_DATADOG_APPNAME }} version:{{ app_version }}",DD_TRACE_LOG_STREAM_HANDLER=false,DD_PROFILING_ENABLED=true,DD_DATA_STREAMS_ENABLED=true,{% endif -%}LANG={{ XQUEUE_LANG }},XQUEUE_CFG={{ COMMON_CFG_DIR }}/xqueue.yml
+environment={% if COMMON_ENABLE_NEWRELIC_APP %}NEW_RELIC_STARTUP_TIMEOUT=10,NEW_RELIC_APP_NAME={{ XQUEUE_CONSUMER_NEWRELIC_APPNAME }},NEW_RELIC_LICENSE_KEY={{ NEWRELIC_LICENSE_KEY }},{% endif -%}{% if XQUEUE_DATADOG_ENABLE %}DD_DJANGO_USE_HANDLER_RESOURCE_FORMAT=true,DD_TAGS="service:{{ XQUEUE_CONSUMER_DATADOG_APPNAME }} version:{{ app_version }}",DD_TRACE_LOG_STREAM_HANDLER=false,DD_PROFILING_ENABLED=true,DD_DATA_STREAMS_ENABLED=true,{% endif -%}LANG={{ XQUEUE_LANG }},XQUEUE_CFG={{ COMMON_CFG_DIR }}/xqueue.yml
 
 stdout_logfile={{ supervisor_log_dir }}/%(program_name)s-stdout.log
 stderr_logfile={{ supervisor_log_dir }}/%(program_name)s-stderr.log
diff --git a/playbooks/roles/xqwatcher/defaults/main.yml b/playbooks/roles/xqwatcher/defaults/main.yml
index 9797e0c3989..d32a43fa0ea 100644
--- a/playbooks/roles/xqwatcher/defaults/main.yml
+++ b/playbooks/roles/xqwatcher/defaults/main.yml
@@ -76,6 +76,8 @@ XQWATCHER_NEWRELIC_APPNAME: "{{ COMMON_DEPLOYMENT }}-{{ COMMON_ENVIRONMENT }}-xq
 XQWATCHER_PIP_EXTRA_ARGS: "-i {{ COMMON_PYPI_MIRROR_URL }}"
 
 XQWATCHER_DATADOG_APPNAME: "edx-{{ xqwatcher_service_name }}"
+XQWATCHER_DATADOG_ENABLED: "{{COMMON_ENABLE_DATADOG and COMMON_ENABLE_DATADOG_APP}}"
+
 #
 #
 # vars are namespace with the module name.
diff --git a/playbooks/roles/xqwatcher/tasks/deploy_watcher.yml b/playbooks/roles/xqwatcher/tasks/deploy_watcher.yml
index e9a13e29113..af30337a702 100644
--- a/playbooks/roles/xqwatcher/tasks/deploy_watcher.yml
+++ b/playbooks/roles/xqwatcher/tasks/deploy_watcher.yml
@@ -15,7 +15,7 @@
     - install:app-requirements
 
 - name: "Install Datadog APM requirements"
-  when: COMMON_ENABLE_DATADOG and COMMON_ENABLE_DATADOG_APP
+  when: XQWATCHER_DATADOG_ENABLED
   pip:
     name:
       - ddtrace
diff --git a/playbooks/roles/xqwatcher/templates/edx/app/supervisor/conf.d/xqwatcher.conf.j2 b/playbooks/roles/xqwatcher/templates/edx/app/supervisor/conf.d/xqwatcher.conf.j2
index 3429d9ce643..f1682f7f1a7 100644
--- a/playbooks/roles/xqwatcher/templates/edx/app/supervisor/conf.d/xqwatcher.conf.j2
+++ b/playbooks/roles/xqwatcher/templates/edx/app/supervisor/conf.d/xqwatcher.conf.j2
@@ -8,7 +8,7 @@
 {% else %}
 {% set executable = xqwatcher_venv_dir + '/bin/python' %}
 {% endif %}
-{% if COMMON_ENABLE_DATADOG and COMMON_ENABLE_DATADOG_APP %}
+{% if XQWATCHER_DATADOG_ENABLED %}
 {% set executable = xqwatcher_venv_dir + '/bin/ddtrace-run ' + executable %}
 {% endif -%}
 
@@ -21,6 +21,6 @@ stdout_logfile={{ supervisor_log_dir }}/%(program_name)s-stdout.log
 stderr_logfile={{ supervisor_log_dir }}/%(program_name)s-stderr.log
 # Copied DD_TRACE_LOG_STREAM_HANDLER config from edx_django_service. This is required
 # to disable Datadog trace debug logging.
-environment={% if COMMON_ENABLE_NEWRELIC_APP %}NEW_RELIC_APP_NAME={{ XQWATCHER_NEWRELIC_APPNAME }},NEW_RELIC_LICENSE_KEY={{ NEWRELIC_LICENSE_KEY }},{% endif -%}{% if COMMON_ENABLE_DATADOG and COMMON_ENABLE_DATADOG_APP %}DD_DJANGO_USE_HANDLER_RESOURCE_FORMAT=true,DD_TAGS="service:{{ XQWATCHER_DATADOG_APPNAME }} version:{{ app_version }}",DD_TRACE_LOG_STREAM_HANDLER=false,DD_PROFILING_ENABLED=true,DD_DATA_STREAMS_ENABLED=true,{% endif -%}
+environment={% if COMMON_ENABLE_NEWRELIC_APP %}NEW_RELIC_APP_NAME={{ XQWATCHER_NEWRELIC_APPNAME }},NEW_RELIC_LICENSE_KEY={{ NEWRELIC_LICENSE_KEY }},{% endif -%}{% if XQWATCHER_DATADOG_ENABLED %}DD_DJANGO_USE_HANDLER_RESOURCE_FORMAT=true,DD_TAGS="service:{{ XQWATCHER_DATADOG_APPNAME }} version:{{ app_version }}",DD_TRACE_LOG_STREAM_HANDLER=false,DD_PROFILING_ENABLED=true,DD_DATA_STREAMS_ENABLED=true,{% endif -%}
 killasgroup=true
 stopasgroup=true