diff --git a/packages/grafana-ui/src/components/Text/Text.tsx b/packages/grafana-ui/src/components/Text/Text.tsx
index eb036f186e7..29f3a46c113 100644
--- a/packages/grafana-ui/src/components/Text/Text.tsx
+++ b/packages/grafana-ui/src/components/Text/Text.tsx
@@ -1,12 +1,11 @@
 import { css } from '@emotion/css';
-import React, { createElement, CSSProperties, useEffect, useImperativeHandle, useMemo, useRef, useState } from 'react';
-import ReactDomServer from 'react-dom/server';
+import React, { createElement, CSSProperties } from 'react';
 
 import { GrafanaTheme2, ThemeTypographyVariantTypes } from '@grafana/data';
 
 import { useStyles2 } from '../../themes';
-import { Tooltip } from '../Tooltip/Tooltip';
 
+import { TruncatedText } from './TruncatedText';
 import { customWeight, customColor, customVariant } from './utils';
 
 export interface TextProps extends Omit<React.HTMLAttributes<HTMLElement>, 'className' | 'style'> {
@@ -30,70 +29,35 @@ export interface TextProps extends Omit<React.HTMLAttributes<HTMLElement>, 'clas
 export const Text = React.forwardRef<HTMLElement, TextProps>(
   ({ element = 'span', variant, weight, color, truncate, italic, textAlignment, children, ...restProps }, ref) => {
     const styles = useStyles2(getTextStyles, element, variant, color, weight, truncate, italic, textAlignment);
-    const [isOverflowing, setIsOverflowing] = useState(false);
-    const internalRef = useRef<HTMLElement>(null);
 
-    // wire up the forwarded ref to the internal ref
-    useImperativeHandle<HTMLElement | null, HTMLElement | null>(ref, () => internalRef.current);
-
-    const childElement = createElement(
-      element,
-      {
-        ...restProps,
-        style: undefined, // remove style prop to avoid overriding the styles
-        className: styles,
-        // when overflowing, the internalRef is passed to the tooltip which forwards it on to the child element
-        ref: isOverflowing ? undefined : internalRef,
-      },
-      children
-    );
-
-    const resizeObserver = useMemo(
-      () =>
-        new ResizeObserver((entries) => {
-          for (const entry of entries) {
-            if (entry.target.clientWidth && entry.target.scrollWidth) {
-              if (entry.target.scrollWidth > entry.target.clientWidth) {
-                setIsOverflowing(true);
-              }
-              if (entry.target.scrollWidth <= entry.target.clientWidth) {
-                setIsOverflowing(false);
-              }
-            }
-          }
-        }),
-      []
-    );
-
-    useEffect(() => {
-      const { current } = internalRef;
-      if (current && truncate) {
-        resizeObserver.observe(current);
-      }
-      return () => {
-        resizeObserver.disconnect();
-      };
-    }, [isOverflowing, resizeObserver, truncate]);
-
-    const getTooltipText = (children: NonNullable<React.ReactNode>) => {
-      if (typeof children === 'string') {
-        return children;
-      }
-      const html = ReactDomServer.renderToStaticMarkup(<>{children}</>);
-      const getRidOfTags = html.replace(/(<([^>]+)>)/gi, '');
-      return getRidOfTags;
-    };
-    // A 'span' is an inline element therefore it can't be truncated
-    // and it should be wrapped in a parent element that is the one that will show the tooltip
-    if (truncate && isOverflowing && element !== 'span') {
-      return (
-        <Tooltip ref={internalRef} content={getTooltipText(children)}>
-          {childElement}
-        </Tooltip>
+    const childElement = (ref: React.ForwardedRef<HTMLElement> | undefined) => {
+      return createElement(
+        element,
+        {
+          ...restProps,
+          style: undefined, // Remove the style prop to avoid overriding the styles
+          className: styles,
+          // When overflowing, the internalRef is passed to the tooltip, which forwards it to the child element
+          ref,
+        },
+        children
       );
-    } else {
-      return childElement;
+    };
+
+    // A 'span' is an inline element, so it can't be truncated
+    // and it should be wrapped in a parent element that will show the tooltip
+    if (!truncate || element === 'span') {
+      return childElement(undefined);
     }
+
+    return (
+      <TruncatedText
+        childElement={childElement}
+        // eslint-disable-next-line react/no-children-prop
+        children={children}
+        ref={ref}
+      />
+    );
   }
 );
 
diff --git a/packages/grafana-ui/src/components/Text/TruncatedText.tsx b/packages/grafana-ui/src/components/Text/TruncatedText.tsx
new file mode 100644
index 00000000000..e74cbd36bb7
--- /dev/null
+++ b/packages/grafana-ui/src/components/Text/TruncatedText.tsx
@@ -0,0 +1,64 @@
+import React, { useEffect, useImperativeHandle, useMemo, useRef, useState } from 'react';
+import ReactDOMServer from 'react-dom/server';
+
+import { Tooltip } from '../Tooltip/Tooltip';
+
+interface TruncatedTextProps {
+  childElement: (ref: React.ForwardedRef<HTMLElement> | undefined) => React.ReactElement;
+  children: NonNullable<React.ReactNode>;
+}
+
+export const TruncatedText = React.forwardRef<HTMLElement, TruncatedTextProps>(({ childElement, children }, ref) => {
+  const [isOverflowing, setIsOverflowing] = useState(false);
+  const internalRef = useRef<HTMLElement>(null);
+
+  // Wire up the forwarded ref to the internal ref
+  useImperativeHandle<HTMLElement | null, HTMLElement | null>(ref, () => internalRef.current);
+
+  const resizeObserver = useMemo(
+    () =>
+      new ResizeObserver((entries) => {
+        for (const entry of entries) {
+          if (entry.target.clientWidth && entry.target.scrollWidth) {
+            if (entry.target.scrollWidth > entry.target.clientWidth) {
+              setIsOverflowing(true);
+            }
+            if (entry.target.scrollWidth <= entry.target.clientWidth) {
+              setIsOverflowing(false);
+            }
+          }
+        }
+      }),
+    []
+  );
+
+  useEffect(() => {
+    const { current } = internalRef;
+    if (current) {
+      resizeObserver.observe(current);
+    }
+    return () => {
+      resizeObserver.disconnect();
+    };
+  }, [setIsOverflowing, resizeObserver]);
+
+  const getTooltipText = (children: NonNullable<React.ReactNode>) => {
+    if (typeof children === 'string') {
+      return children;
+    }
+    const html = ReactDOMServer.renderToStaticMarkup(<>{children}</>);
+    return html.replace(/(<([^>]+)>)/gi, '');
+  };
+
+  if (isOverflowing) {
+    return (
+      <Tooltip ref={internalRef} content={getTooltipText(children)}>
+        {childElement(undefined)}
+      </Tooltip>
+    );
+  } else {
+    return childElement(internalRef);
+  }
+});
+
+TruncatedText.displayName = 'TruncatedText';