AWS Elastic Compute Cloud (EC2) provides automatic scaling capabilities through AWS Auto Scaling, which adjusts the number of virtual machines based on demand. Datadog's integration with AWS Auto Scaling allows users to track metrics and events from their Auto Scaling groups in one place, providing insights into performance and availability. The integration includes an out-of-the-box screenboard that displays recent events and shows how group sizes have changed over time. With this integration, users can configure scaling policies based on specific needs, including dynamic scaling, manual scaling, and regular scaling schedules. Datadog's integration also helps determine the most appropriate ways to configure Auto Scaling groups to ensure infrastructure stays in step with demand. Additionally, users can track key demand metrics, set alerts for health checks, and monitor AWS Auto Scaling with Datadog, all within a single platform.