diff --git a/lerna.json b/lerna.json
index f174892e686..78f2726b208 100644
--- a/lerna.json
+++ b/lerna.json
@@ -1,8 +1,6 @@
 {
   "npmClient": "yarn",
   "useWorkspaces": true,
-  "packages": [
-    "packages/*"
-  ],
+  "packages": ["packages/*"],
   "version": "10.1.0-pre"
 }
diff --git a/public/app/features/datasources/components/picker/AddNewDataSourceButton.tsx b/public/app/features/datasources/components/picker/AddNewDataSourceButton.tsx
new file mode 100644
index 00000000000..256ce1ef89e
--- /dev/null
+++ b/public/app/features/datasources/components/picker/AddNewDataSourceButton.tsx
@@ -0,0 +1,32 @@
+import React from 'react';
+
+import { LinkButton, ButtonVariant } from '@grafana/ui';
+import { config } from 'app/core/config';
+import { contextSrv } from 'app/core/core';
+import { ROUTES as CONNECTIONS_ROUTES } from 'app/features/connections/constants';
+import { DATASOURCES_ROUTES } from 'app/features/datasources/constants';
+import { AccessControlAction } from 'app/types';
+
+interface AddNewDataSourceButtonProps {
+  onClick?: () => void;
+  variant?: ButtonVariant;
+}
+
+export function AddNewDataSourceButton({ variant, onClick }: AddNewDataSourceButtonProps) {
+  const hasCreateRights = contextSrv.hasPermission(AccessControlAction.DataSourcesCreate);
+  const newDataSourceURL = config.featureToggles.dataConnectionsConsole
+    ? CONNECTIONS_ROUTES.DataSourcesNew
+    : DATASOURCES_ROUTES.New;
+
+  return (
+    <LinkButton
+      variant={variant || 'primary'}
+      href={newDataSourceURL}
+      disabled={!hasCreateRights}
+      tooltip={!hasCreateRights ? 'You do not have permission to configure new data sources' : undefined}
+      onClick={onClick}
+    >
+      Configure a new data source
+    </LinkButton>
+  );
+}
diff --git a/public/app/features/datasources/components/picker/DataSourceDropdown.tsx b/public/app/features/datasources/components/picker/DataSourceDropdown.tsx
index 560d54dbec3..21166c00d55 100644
--- a/public/app/features/datasources/components/picker/DataSourceDropdown.tsx
+++ b/public/app/features/datasources/components/picker/DataSourceDropdown.tsx
@@ -25,6 +25,7 @@ const INTERACTION_ITEM = {
   SELECT_DS: 'select_ds',
   ADD_FILE: 'add_file',
   OPEN_ADVANCED_DS_PICKER: 'open_advanced_ds_picker',
+  CONFIG_NEW_DS_EMPTY_STATE: 'config_new_ds_empty_state',
 };
 
 export function DataSourceDropdown(props: DataSourceDropdownProps) {
@@ -205,16 +206,19 @@ const PickerContent = React.forwardRef<HTMLDivElement, PickerContentProps>((prop
 
   return (
     <div style={props.style} ref={ref} className={styles.container}>
-      <div className={styles.dataSourceList}>
-        <DataSourceList
-          {...props}
-          enableKeyboardNavigation
-          current={current}
-          onChange={changeCallback}
-          filter={(ds) => matchDataSourceWithSearch(ds, filterTerm)}
-        ></DataSourceList>
-      </div>
-
+      <DataSourceList
+        {...props}
+        enableKeyboardNavigation
+        className={styles.dataSourceList}
+        current={current}
+        onChange={changeCallback}
+        filter={(ds) => matchDataSourceWithSearch(ds, filterTerm)}
+        onClickEmptyStateCTA={() =>
+          reportInteraction(INTERACTION_EVENT_NAME, {
+            item: INTERACTION_ITEM.CONFIG_NEW_DS_EMPTY_STATE,
+          })
+        }
+      ></DataSourceList>
       <div className={styles.footer}>
         {onClickAddCSV && config.featureToggles.editPanelCSVDragAndDrop && (
           <Button variant="secondary" size="sm" onClick={clickAddCSVCallback}>
diff --git a/public/app/features/datasources/components/picker/DataSourceList.tsx b/public/app/features/datasources/components/picker/DataSourceList.tsx
index 815336e95bd..a5f317b006c 100644
--- a/public/app/features/datasources/components/picker/DataSourceList.tsx
+++ b/public/app/features/datasources/components/picker/DataSourceList.tsx
@@ -4,10 +4,11 @@ import { Observable } from 'rxjs';
 
 import { DataSourceInstanceSettings, DataSourceRef, GrafanaTheme2 } from '@grafana/data';
 import { getTemplateSrv } from '@grafana/runtime';
-import { useTheme2 } from '@grafana/ui';
+import { useStyles2, useTheme2 } from '@grafana/ui';
 
 import { useDatasources, useKeyboardNavigatableList, useRecentlyUsedDataSources } from '../../hooks';
 
+import { AddNewDataSourceButton } from './AddNewDataSourceButton';
 import { DataSourceCard } from './DataSourceCard';
 import { getDataSourceCompareFn, isDataSourceMatch } from './utils';
 
@@ -37,6 +38,7 @@ export interface DataSourceListProps {
   inputId?: string;
   filter?: (dataSource: DataSourceInstanceSettings) => boolean;
   onClear?: () => void;
+  onClickEmptyStateCTA?: () => void;
   enableKeyboardNavigation?: boolean;
 }
 
@@ -51,7 +53,7 @@ export function DataSourceList(props: DataSourceListProps) {
   const theme = useTheme2();
   const styles = getStyles(theme, selectedItemCssSelector);
 
-  const { className, current, onChange, enableKeyboardNavigation } = props;
+  const { className, current, onChange, enableKeyboardNavigation, onClickEmptyStateCTA } = props;
   // QUESTION: Should we use data from the Redux store as admin DS view does?
   const dataSources = useDatasources({
     alerting: props.alerting,
@@ -67,11 +69,14 @@ export function DataSourceList(props: DataSourceListProps) {
   });
 
   const [recentlyUsedDataSources, pushRecentlyUsedDataSource] = useRecentlyUsedDataSources();
+  const filteredDataSources = props.filter ? dataSources.filter(props.filter) : dataSources;
 
   return (
     <div ref={containerRef} className={cx(className, styles.container)}>
-      {dataSources
-        .filter((ds) => (props.filter ? props.filter(ds) : true))
+      {filteredDataSources.length === 0 && (
+        <EmptyState className={styles.emptyState} onClickCTA={onClickEmptyStateCTA} />
+      )}
+      {filteredDataSources
         .sort(getDataSourceCompareFn(current, recentlyUsedDataSources, getDataSourceVariableIDs()))
         .map((ds) => (
           <DataSourceCard
@@ -89,6 +94,30 @@ export function DataSourceList(props: DataSourceListProps) {
   );
 }
 
+function EmptyState({ className, onClickCTA }: { className?: string; onClickCTA?: () => void }) {
+  const styles = useStyles2(getEmptyStateStyles);
+  return (
+    <div className={cx(className, styles.container)}>
+      <p className={styles.message}>No data sources found</p>
+      <AddNewDataSourceButton onClick={onClickCTA} />
+    </div>
+  );
+}
+
+function getEmptyStateStyles(theme: GrafanaTheme2) {
+  return {
+    container: css`
+      display: flex;
+      flex-direction: column;
+      justify-content: center;
+      align-items: center;
+    `,
+    message: css`
+      margin-bottom: ${theme.spacing(3)};
+    `,
+  };
+}
+
 function getDataSourceVariableIDs() {
   const templateSrv = getTemplateSrv();
   /** Unforunately there is no easy way to identify data sources that are variables. The uid of the data source will be the name of the variable in a templating syntax $([name]) **/
@@ -101,9 +130,15 @@ function getDataSourceVariableIDs() {
 function getStyles(theme: GrafanaTheme2, selectedItemCssSelector: string) {
   return {
     container: css`
+      display: flex;
+      flex-direction: column;
       ${selectedItemCssSelector} {
         background-color: ${theme.colors.background.secondary};
       }
     `,
+    emptyState: css`
+      height: 100%;
+      flex: 1;
+    `,
   };
 }
diff --git a/public/app/features/datasources/components/picker/DataSourceModal.tsx b/public/app/features/datasources/components/picker/DataSourceModal.tsx
index a7845f742b4..663e1f2a7db 100644
--- a/public/app/features/datasources/components/picker/DataSourceModal.tsx
+++ b/public/app/features/datasources/components/picker/DataSourceModal.tsx
@@ -10,18 +10,13 @@ import {
   FileDropzone,
   FileDropzoneDefaultChildren,
   CustomScrollbar,
-  LinkButton,
   useStyles2,
   Input,
   Icon,
 } from '@grafana/ui';
-import { config } from 'app/core/config';
-import { contextSrv } from 'app/core/core';
-import { ROUTES as CONNECTIONS_ROUTES } from 'app/features/connections/constants';
 import * as DFImport from 'app/features/dataframe-import';
-import { DATASOURCES_ROUTES } from 'app/features/datasources/constants';
-import { AccessControlAction } from 'app/types';
 
+import { AddNewDataSourceButton } from './AddNewDataSourceButton';
 import { DataSourceList } from './DataSourceList';
 import { matchDataSourceWithSearch } from './utils';
 
@@ -30,6 +25,7 @@ const INTERACTION_ITEM = {
   SELECT_DS: 'select_ds',
   UPLOAD_FILE: 'upload_file',
   CONFIG_NEW_DS: 'config_new_ds',
+  CONFIG_NEW_DS_EMPTY_STATE: 'config_new_ds_empty_state',
   SEARCH: 'search',
   DISMISS: 'dismiss',
 };
@@ -54,11 +50,7 @@ export function DataSourceModal({
 }: DataSourceModalProps) {
   const styles = useStyles2(getDataSourceModalStyles);
   const [search, setSearch] = useState('');
-  const hasCreateRights = contextSrv.hasPermission(AccessControlAction.DataSourcesCreate);
   const analyticsInteractionSrc = reportedInteractionFrom || 'modal';
-  const newDataSourceURL = config.featureToggles.dataConnectionsConsole
-    ? CONNECTIONS_ROUTES.DataSourcesNew
-    : DATASOURCES_ROUTES.New;
 
   const onDismissModal = () => {
     onDismiss();
@@ -106,12 +98,19 @@ export function DataSourceModal({
         />
         <CustomScrollbar>
           <DataSourceList
+            className={styles.dataSourceList}
             dashboard={false}
             mixed={false}
             variables
             filter={(ds) => matchDataSourceWithSearch(ds, search) && !ds.meta.builtIn}
             onChange={onChangeDataSource}
             current={current}
+            onClickEmptyStateCTA={() =>
+              reportInteraction(INTERACTION_EVENT_NAME, {
+                item: INTERACTION_ITEM.CONFIG_NEW_DS_EMPTY_STATE,
+                src: analyticsInteractionSrc,
+              })
+            }
           />
         </CustomScrollbar>
       </div>
@@ -149,20 +148,15 @@ export function DataSourceModal({
           )}
         </div>
         <div className={styles.dsCTAs}>
-          <LinkButton
+          <AddNewDataSourceButton
             variant="secondary"
-            href={newDataSourceURL}
-            disabled={!hasCreateRights}
-            tooltip={!hasCreateRights ? 'You do not have permission to configure new data sources' : undefined}
             onClick={() => {
               reportInteraction(INTERACTION_EVENT_NAME, {
                 item: INTERACTION_ITEM.CONFIG_NEW_DS,
                 src: analyticsInteractionSrc,
               });
             }}
-          >
-            Configure a new data source
-          </LinkButton>
+          />
         </div>
       </div>
     </Modal>
@@ -203,6 +197,9 @@ function getDataSourceModalStyles(theme: GrafanaTheme2) {
       flex: 1;
       margin-bottom: ${theme.spacing(4)};
     `,
+    dataSourceList: css`
+      height: 100%;
+    `,
     builtInDataSourceList: css`
       margin-bottom: ${theme.spacing(4)};
     `,