How to integrate Datadog MCP with Claude Agent SDK

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Introduction

This guide walks you through connecting Datadog to the Claude Agent SDK using the Composio tool router. By the end, you'll have a working Datadog agent that can create downtime for nightly maintenance window, list all monitors tracking cpu usage, create synthetic api test for login endpoint, get details of production dashboard through natural language commands.

This guide will help you understand how to give your Claude Agent SDK agent real control over a Datadog account through Composio's Datadog MCP server.

Before we dive in, let's take a quick look at the key ideas and tools involved.

TL;DR

Here's what you'll learn:
  • Get and set up your Claude/Anthropic and Composio API keys
  • Install the necessary dependencies
  • Initialize Composio and create a Tool Router session for Datadog
  • Configure an AI agent that can use Datadog as a tool
  • Run a live chat session where you can ask the agent to perform Datadog operations

What is Claude Agent SDK?

The Claude Agent SDK is Anthropic's official framework for building AI agents powered by Claude. It provides a streamlined interface for creating agents with MCP tool support and conversation management.

Key features include:

  • Native MCP Support: Built-in support for Model Context Protocol servers
  • Permission Modes: Control tool execution permissions
  • Streaming Responses: Real-time response streaming for interactive applications
  • Context Manager: Clean async context management for sessions

What is the Datadog MCP server, and what's possible with it?

The Datadog MCP server is an implementation of the Model Context Protocol that connects your AI agent and assistants like Claude, Cursor, etc directly to your Datadog account. It provides structured and secure access to your monitoring and observability platform, so your agent can perform actions like creating dashboards, managing monitors, scheduling downtimes, and tracking key events on your behalf.

  • Custom dashboard creation and management: Direct your agent to build new dashboards or retrieve detailed information about existing dashboards for unified infrastructure and application monitoring.
  • Monitor setup and deletion: Easily have your agent create new monitors to track critical metrics or remove outdated ones to keep your alerting system relevant.
  • Automated downtime scheduling: Let your agent schedule maintenance windows by creating downtimes that suppress alerts during planned outages or deployments.
  • Event tracking and logging: Ask your agent to create and log significant events—like deployments or configuration changes—so your team always stays informed.
  • Service level objectives and synthetic testing: Instruct your agent to define SLOs or set up synthetic API tests for continuous reliability and performance tracking.

Supported Tools & Triggers

Tools
Create DashboardCreate a dashboard in datadog.
Create downtimeCreates a new downtime in datadog to suppress alerts during maintenance windows or planned outages.
Create eventCreates a new event in datadog.
Create monitorCreates a new datadog monitor to track metrics, logs, or other data sources with configurable alerting thresholds and notifications.
Create SLOCreate a service level objective (slo) in datadog.
Create Synthetic API TestCreate a synthetic api test in datadog.
Create WebhookCreate a webhook in datadog.
Delete DashboardDelete a dashboard in datadog.
Delete monitorDeletes a datadog monitor permanently.
Get DashboardGet a specific dashboard from datadog.
Get monitorRetrieves detailed information about a specific datadog monitor, including its current state, configuration, and any active downtimes.
Get Service DependenciesGet service dependency mapping from datadog apm.
Get Synthetics LocationsTool to retrieve all available public and private locations for synthetic tests in datadog.
Get host tagsRetrieves all tags associated with a specific host in datadog.
Get Trace by IDGet detailed information about a specific trace by its id.
Get usage summaryRetrieves usage summary information from datadog including api calls, hosts, containers, and other billable usage metrics.
List All TagsList all tags from datadog.
List API KeysList api keys in datadog.
List APM ServicesList apm services from datadog.
List AWS IntegrationList aws integrations in datadog.
List dashboardsLists all datadog dashboards with basic information.
List eventsLists events from datadog within a specified time range.
List hostsLists all hosts in your datadog infrastructure with detailed information including metrics, tags, and status.
List IncidentsList incidents from datadog.
List Log IndexesTool to retrieve a list of all log indexes configured in datadog.
List monitorsGet all monitor details.
List RolesList roles from datadog organization.
List service checksLists service checks from datadog.
List SLOsList service level objectives (slos) from datadog.
List Synthetics TestsList synthetics tests from datadog.
List UsersList users from datadog organization.
List WebhooksList webhooks from datadog.
Mute MonitorMute a monitor in datadog.
Query metricsQueries datadog metrics and returns time series data.
Search logsSearches datadog logs with advanced filtering capabilities.
Search Spans AnalyticsSearch and analyze span data with aggregations in datadog.
Search TracesSearch for traces in datadog apm.
Submit metricsSubmits custom metrics to datadog.
Unmute MonitorUnmute a monitor in datadog.
Update DashboardUpdate a dashboard in datadog.
Update host tagsUpdates tags for a specific host in datadog.
Update monitorUpdates an existing datadog monitor with new configuration, thresholds, or notification settings.

What is the Composio tool router, and how does it fit here?

What is Tool Router?

Composio's Tool Router helps agents find the right tools for a task at runtime. You can plug in multiple toolkits (like Gmail, HubSpot, and GitHub), and the agent will identify the relevant app and action to complete multi-step workflows. This can reduce token usage and improve the reliability of tool calls. Read more here: Getting started with Tool Router

The tool router generates a secure MCP URL that your agents can access to perform actions.

How the Tool Router works

The Tool Router follows a three-phase workflow:

  1. Discovery: Searches for tools matching your task and returns relevant toolkits with their details.
  2. Authentication: Checks for active connections. If missing, creates an auth config and returns a connection URL via Auth Link.
  3. Execution: Executes the action using the authenticated connection.

Step-by-step Guide

Prerequisites

Before starting, make sure you have:
  • Composio API Key and Claude/Anthropic API Key
  • Primary know-how of Claude Agents SDK
  • A Datadog account
  • Some knowledge of Python

Getting API Keys for Claude/Anthropic and Composio

Claude/Anthropic API Key
  • Go to the Anthropic Console and create an API key. You'll need credits to use the models.
  • Keep the API key safe.
Composio API Key
  • Log in to the Composio dashboard.
  • Navigate to your API settings and generate a new API key.
  • Store this key securely as you'll need it for authentication.

Install dependencies

pip install composio-anthropic claude-agent-sdk python-dotenv

Install the Composio SDK and the Claude Agents SDK.

What's happening:

  • composio-anthropic provides Composio integration for Anthropic
  • claude-agent-sdk is the core agent framework
  • python-dotenv loads environment variables

Set up environment variables

bash
COMPOSIO_API_KEY=your_composio_api_key_here
USER_ID=your_user_id_here
ANTHROPIC_API_KEY=your_anthropic_api_key_here

Create a .env file in your project root.

What's happening:

  • COMPOSIO_API_KEY authenticates with Composio
  • USER_ID identifies the user for session management
  • ANTHROPIC_API_KEY authenticates with Anthropic/Claude

Import dependencies

import asyncio
from claude_agent_sdk import ClaudeSDKClient, ClaudeAgentOptions
import os
from composio import Composio
from dotenv import load_dotenv

load_dotenv()
What's happening:
  • We're importing all necessary libraries including the Claude Agent SDK and Composio
  • The load_dotenv() function loads environment variables from your .env file
  • This setup prepares the foundation for connecting Claude with Datadog functionality

Create a Composio instance and Tool Router session

async def chat_with_remote_mcp():
    api_key = os.getenv("COMPOSIO_API_KEY")
    if not api_key:
        raise RuntimeError("COMPOSIO_API_KEY is not set")

    composio = Composio(api_key=api_key)

    # Create Tool Router session for Datadog
    mcp_server = composio.create(
        user_id=os.getenv("USER_ID"),
        toolkits=["datadog"]
    )

    url = mcp_server.mcp.url

    if not url:
        raise ValueError("Session URL not found")
What's happening:
  • The function checks for the required COMPOSIO_API_KEY environment variable
  • We're creating a Composio instance using our API key
  • The create method creates a Tool Router session for Datadog
  • The returned url is the MCP server URL that your agent will use

Configure Claude Agent with MCP

# Configure remote MCP server for Claude
options = ClaudeAgentOptions(
    permission_mode="bypassPermissions",
    mcp_servers={
        "composio": {
            "type": "http",
            "url": url,
            "headers": {
                "x-api-key": os.getenv("COMPOSIO_API_KEY")
            }
        }
    },
    system_prompt="You are a helpful assistant with access to Datadog tools via Composio.",
    max_turns=10
)
What's happening:
  • We're configuring the Claude Agent options with the MCP server URL
  • permission_mode="bypassPermissions" allows the agent to execute operations without asking for permission each time
  • The system prompt instructs the agent that it has access to Datadog
  • max_turns=10 limits the conversation length to prevent excessive API usage

Create client and start chat loop

# Create client with context manager
async with ClaudeSDKClient(options=options) as client:
    print("\nChat started. Type 'exit' or 'quit' to end.\n")

    # Main chat loop
    while True:
        user_input = input("You: ").strip()
        if user_input.lower() in {"exit", "quit"}:
            print("Goodbye!")
            break

        # Send query
        await client.query(user_input)

        # Receive and print response
        print("Claude: ", end="", flush=True)
        async for message in client.receive_response():
            if hasattr(message, "content"):
                for block in message.content:
                    if hasattr(block, "text"):
                        print(block.text, end="", flush=True)
        print()
What's happening:
  • The Claude SDK client is created using the async context manager pattern
  • The agent processes each query and streams the response back in real-time
  • The chat loop continues until the user types 'exit' or 'quit'

Run the application

if __name__ == "__main__":
    asyncio.run(chat_with_remote_mcp())
What's happening:
  • This entry point runs the async chat_with_remote_mcp() function using asyncio.run()
  • The application will start, create the MCP connection, and begin the interactive chat session

Complete Code

Here's the complete code to get you started with Datadog and Claude Agent SDK:

import asyncio
from claude_agent_sdk import ClaudeSDKClient, ClaudeAgentOptions
import os
from composio import Composio
from dotenv import load_dotenv

load_dotenv()

async def chat_with_remote_mcp():
    api_key = os.getenv("COMPOSIO_API_KEY")
    if not api_key:
        raise RuntimeError("COMPOSIO_API_KEY is not set")

    composio = Composio(api_key=api_key)

    # Create Tool Router session for Datadog
    mcp_server = composio.create(
        user_id=os.getenv("USER_ID"),
        toolkits=["datadog"]
    )

    url = mcp_server.mcp.url

    if not url:
        raise ValueError("Session URL not found")

    # Configure remote MCP server for Claude
    options = ClaudeAgentOptions(
        permission_mode="bypassPermissions",
        mcp_servers={
            "composio": {
                "type": "http",
                "url": url,
                "headers": {
                    "x-api-key": os.getenv("COMPOSIO_API_KEY")
                }
            }
        },
        system_prompt="You are a helpful assistant with access to Datadog tools via Composio.",
        max_turns=10
    )

    # Create client with context manager
    async with ClaudeSDKClient(options=options) as client:
        print("\nChat started. Type 'exit' or 'quit' to end.\n")

        # Main chat loop
        while True:
            user_input = input("You: ").strip()
            if user_input.lower() in {"exit", "quit"}:
                print("Goodbye!")
                break

            # Send query
            await client.query(user_input)

            # Receive and print response
            print("Claude: ", end="", flush=True)
            async for message in client.receive_response():
                if hasattr(message, "content"):
                    for block in message.content:
                        if hasattr(block, "text"):
                            print(block.text, end="", flush=True)
            print()

if __name__ == "__main__":
    asyncio.run(chat_with_remote_mcp())

Conclusion

You've successfully built a Claude Agent SDK agent that can interact with Datadog through Composio's Tool Router.

Key features:

  • Native MCP support through Claude's agent framework
  • Streaming responses for real-time interaction
  • Permission bypass for smooth automated workflows
You can extend this by adding more toolkits, implementing custom business logic, or building a web interface around the agent.

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FAQ

What are the differences in Tool Router MCP and Datadog MCP?

With a standalone Datadog MCP server, the agents and LLMs can only access a fixed set of Datadog tools tied to that server. However, with the Composio Tool Router, agents can dynamically load tools from Datadog and many other apps based on the task at hand, all through a single MCP endpoint.

Can I use Tool Router MCP with Claude Agent SDK?

Yes, you can. Claude Agent SDK fully supports MCP integration. You get structured tool calling, message history handling, and model orchestration while Tool Router takes care of discovering and serving the right Datadog tools.

Can I manage the permissions and scopes for Datadog while using Tool Router?

Yes, absolutely. You can configure which Datadog scopes and actions are allowed when connecting your account to Composio. You can also bring your own OAuth credentials or API configuration so you keep full control over what the agent can do.

How safe is my data with Composio Tool Router?

All sensitive data such as tokens, keys, and configuration is fully encrypted at rest and in transit. Composio is SOC 2 Type 2 compliant and follows strict security practices so your Datadog data and credentials are handled as safely as possible.

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