diff --git a/resources/services/observatorium-metrics-template.yaml b/resources/services/observatorium-metrics-template.yaml
index 56ee2aa08c..9dc99e98a1 100644
--- a/resources/services/observatorium-metrics-template.yaml
+++ b/resources/services/observatorium-metrics-template.yaml
@@ -1957,6 +1957,7 @@ objects:
               "service_name": "thanos-receive"
             "type": "JAEGER"
           - --receive.default-tenant-id=FB870BF3-9F3A-44FF-9BF7-D7A047A52F43
+          - --receive.grpc-compression=none
           env:
           - name: NAME
             valueFrom:
diff --git a/services/observatorium-metrics-template-overwrites.libsonnet b/services/observatorium-metrics-template-overwrites.libsonnet
index 240df2e66b..fab52f21f5 100644
--- a/services/observatorium-metrics-template-overwrites.libsonnet
+++ b/services/observatorium-metrics-template-overwrites.libsonnet
@@ -401,6 +401,7 @@ local thanosRuleSyncer = import './sidecars/thanos-rule-syncer.libsonnet';
                     if c.name == 'thanos-receive' then c {
                       args+: [
                         '--receive.default-tenant-id=FB870BF3-9F3A-44FF-9BF7-D7A047A52F43',
+                        '--receive.grpc-compression=none',
                       ],
                       env+: s3EnvVars + [{
                         name: 'DEBUG',