diff --git a/modules/data-streams/src/internalClusterTest/java/org/elasticsearch/datastreams/DataStreamIT.java b/modules/data-streams/src/internalClusterTest/java/org/elasticsearch/datastreams/DataStreamIT.java
index 7c0ccbfc116a9..968aab2dceab6 100644
--- a/modules/data-streams/src/internalClusterTest/java/org/elasticsearch/datastreams/DataStreamIT.java
+++ b/modules/data-streams/src/internalClusterTest/java/org/elasticsearch/datastreams/DataStreamIT.java
@@ -1384,7 +1384,9 @@ public void testSearchAllResolvesDataStreams() throws Exception {
 
     public void testGetDataStream() throws Exception {
         Settings settings = Settings.builder().put(IndexMetadata.SETTING_NUMBER_OF_REPLICAS, maximumNumberOfReplicas() + 2).build();
-        DataStreamLifecycle.Template lifecycle = DataStreamLifecycle.builder().dataRetention(randomPositiveTimeValue()).buildTemplate();
+        DataStreamLifecycle.Template lifecycle = DataStreamLifecycle.dataLifecycleBuilder()
+            .dataRetention(randomPositiveTimeValue())
+            .buildTemplate();
         putComposableIndexTemplate("template_for_foo", null, List.of("metrics-foo*"), settings, null, null, lifecycle, false);
         int numDocsFoo = randomIntBetween(2, 16);
         indexDocs("metrics-foo", numDocsFoo);
diff --git a/modules/data-streams/src/internalClusterTest/java/org/elasticsearch/datastreams/SystemDataStreamIT.java b/modules/data-streams/src/internalClusterTest/java/org/elasticsearch/datastreams/SystemDataStreamIT.java
index 0b39ae7855967..4b773e79fe354 100644
--- a/modules/data-streams/src/internalClusterTest/java/org/elasticsearch/datastreams/SystemDataStreamIT.java
+++ b/modules/data-streams/src/internalClusterTest/java/org/elasticsearch/datastreams/SystemDataStreamIT.java
@@ -401,17 +401,23 @@ public Collection<SystemDataStreamDescriptor> getSystemDataStreamDescriptors() {
                         Type.EXTERNAL,
                         ComposableIndexTemplate.builder()
                             .indexPatterns(List.of(".test-failure-store"))
-                            .template(Template.builder().mappings(new CompressedXContent("""
-                                {
-                                    "properties": {
-                                      "@timestamp" : {
-                                        "type": "date"
-                                      },
-                                      "count": {
-                                        "type": "long"
-                                      }
-                                    }
-                                }""")).dataStreamOptions(new DataStreamOptions.Template(new DataStreamFailureStore.Template(true))))
+                            .template(
+                                Template.builder()
+                                    .mappings(new CompressedXContent("""
+                                        {
+                                            "properties": {
+                                              "@timestamp" : {
+                                                "type": "date"
+                                              },
+                                              "count": {
+                                                "type": "long"
+                                              }
+                                            }
+                                        }"""))
+                                    .dataStreamOptions(
+                                        new DataStreamOptions.Template(DataStreamFailureStore.builder().enabled(true).buildTemplate())
+                                    )
+                            )
                             .dataStreamTemplate(new ComposableIndexTemplate.DataStreamTemplate())
                             .build(),
                         Map.of(),
diff --git a/modules/data-streams/src/internalClusterTest/java/org/elasticsearch/datastreams/lifecycle/CrudDataStreamLifecycleIT.java b/modules/data-streams/src/internalClusterTest/java/org/elasticsearch/datastreams/lifecycle/CrudDataStreamLifecycleIT.java
index 7ab58163f0a2f..b82ee87952568 100644
--- a/modules/data-streams/src/internalClusterTest/java/org/elasticsearch/datastreams/lifecycle/CrudDataStreamLifecycleIT.java
+++ b/modules/data-streams/src/internalClusterTest/java/org/elasticsearch/datastreams/lifecycle/CrudDataStreamLifecycleIT.java
@@ -25,7 +25,7 @@
 import java.util.List;
 
 import static org.elasticsearch.datastreams.lifecycle.DataStreamLifecycleFixtures.putComposableIndexTemplate;
-import static org.elasticsearch.datastreams.lifecycle.DataStreamLifecycleFixtures.randomLifecycleTemplate;
+import static org.elasticsearch.datastreams.lifecycle.DataStreamLifecycleFixtures.randomDataLifecycleTemplate;
 import static org.hamcrest.Matchers.equalTo;
 import static org.hamcrest.Matchers.is;
 import static org.hamcrest.Matchers.notNullValue;
@@ -39,7 +39,7 @@ protected Collection<Class<? extends Plugin>> nodePlugins() {
     }
 
     public void testGetLifecycle() throws Exception {
-        DataStreamLifecycle.Template lifecycle = randomLifecycleTemplate();
+        DataStreamLifecycle.Template lifecycle = randomDataLifecycleTemplate();
         putComposableIndexTemplate("id1", null, List.of("with-lifecycle*"), null, null, lifecycle);
         putComposableIndexTemplate("id2", null, List.of("without-lifecycle*"), null, null, null);
         {
@@ -226,7 +226,9 @@ public void testPutLifecycle() throws Exception {
     }
 
     public void testDeleteLifecycle() throws Exception {
-        DataStreamLifecycle.Template lifecycle = DataStreamLifecycle.builder().dataRetention(randomPositiveTimeValue()).buildTemplate();
+        DataStreamLifecycle.Template lifecycle = DataStreamLifecycle.dataLifecycleBuilder()
+            .dataRetention(randomPositiveTimeValue())
+            .buildTemplate();
         putComposableIndexTemplate("id1", null, List.of("with-lifecycle*"), null, null, lifecycle);
         putComposableIndexTemplate("id2", null, List.of("without-lifecycle*"), null, null, null);
         {
diff --git a/modules/data-streams/src/internalClusterTest/java/org/elasticsearch/datastreams/lifecycle/CrudSystemDataStreamLifecycleIT.java b/modules/data-streams/src/internalClusterTest/java/org/elasticsearch/datastreams/lifecycle/CrudSystemDataStreamLifecycleIT.java
index 4119ef2f34de8..1173ad95006cf 100644
--- a/modules/data-streams/src/internalClusterTest/java/org/elasticsearch/datastreams/lifecycle/CrudSystemDataStreamLifecycleIT.java
+++ b/modules/data-streams/src/internalClusterTest/java/org/elasticsearch/datastreams/lifecycle/CrudSystemDataStreamLifecycleIT.java
@@ -207,7 +207,7 @@ public Collection<SystemDataStreamDescriptor> getSystemDataStreamDescriptors() {
                                 Template.builder()
                                     .settings(Settings.EMPTY)
                                     .mappings(mappings)
-                                    .lifecycle(DataStreamLifecycle.builder().dataRetention(randomPositiveTimeValue()))
+                                    .lifecycle(DataStreamLifecycle.dataLifecycleBuilder().dataRetention(randomPositiveTimeValue()))
                             )
                             .dataStreamTemplate(new DataStreamTemplate())
                             .build(),
diff --git a/modules/data-streams/src/internalClusterTest/java/org/elasticsearch/datastreams/lifecycle/DataStreamLifecycleServiceIT.java b/modules/data-streams/src/internalClusterTest/java/org/elasticsearch/datastreams/lifecycle/DataStreamLifecycleServiceIT.java
index cc1a5af0d6760..8a1e01bfe3f5a 100644
--- a/modules/data-streams/src/internalClusterTest/java/org/elasticsearch/datastreams/lifecycle/DataStreamLifecycleServiceIT.java
+++ b/modules/data-streams/src/internalClusterTest/java/org/elasticsearch/datastreams/lifecycle/DataStreamLifecycleServiceIT.java
@@ -168,7 +168,7 @@ public void testRolloverLifecycle() throws Exception {
     }
 
     public void testRolloverAndRetention() throws Exception {
-        DataStreamLifecycle.Template lifecycle = DataStreamLifecycle.builder().dataRetention(TimeValue.ZERO).buildTemplate();
+        DataStreamLifecycle.Template lifecycle = DataStreamLifecycle.dataLifecycleBuilder().dataRetention(TimeValue.ZERO).buildTemplate();
 
         putComposableIndexTemplate("id1", null, List.of("metrics-foo*"), null, null, lifecycle, false);
 
@@ -290,7 +290,9 @@ public void testOriginationDate() throws Exception {
          * days ago, and one with an origination date 1 day ago. After data stream lifecycle runs, we expect the one with the old
          * origination date to have been deleted, and the one with the newer origination date to remain.
          */
-        DataStreamLifecycle.Template lifecycle = DataStreamLifecycle.builder().dataRetention(TimeValue.timeValueDays(7)).buildTemplate();
+        DataStreamLifecycle.Template lifecycle = DataStreamLifecycle.dataLifecycleBuilder()
+            .dataRetention(TimeValue.timeValueDays(7))
+            .buildTemplate();
 
         putComposableIndexTemplate("id1", null, List.of("metrics-foo*"), null, null, lifecycle, false);
 
@@ -836,7 +838,7 @@ public void testDataLifecycleServiceConfiguresTheMergePolicy() throws Exception
 
     public void testReenableDataStreamLifecycle() throws Exception {
         // start with a lifecycle that's not enabled
-        DataStreamLifecycle.Template lifecycle = DataStreamLifecycle.builder().enabled(false).buildTemplate();
+        DataStreamLifecycle.Template lifecycle = DataStreamLifecycle.dataLifecycleBuilder().enabled(false).buildTemplate();
 
         putComposableIndexTemplate("id1", null, List.of("metrics-foo*"), null, null, lifecycle, false);
         String dataStreamName = "metrics-foo";
@@ -892,7 +894,7 @@ public void testReenableDataStreamLifecycle() throws Exception {
 
     public void testLifecycleAppliedToFailureStore() throws Exception {
         // We configure a lifecycle with downsampling to ensure it doesn't fail
-        DataStreamLifecycle.Template lifecycle = DataStreamLifecycle.builder()
+        DataStreamLifecycle.Template lifecycle = DataStreamLifecycle.dataLifecycleBuilder()
             .dataRetention(TimeValue.timeValueSeconds(20))
             .downsampling(
                 List.of(
@@ -1088,7 +1090,8 @@ public Collection<SystemDataStreamDescriptor> getSystemDataStreamDescriptors() {
                             Template.builder()
                                 .settings(Settings.EMPTY)
                                 .lifecycle(
-                                    DataStreamLifecycle.builder().dataRetention(TimeValue.timeValueDays(SYSTEM_DATA_STREAM_RETENTION_DAYS))
+                                    DataStreamLifecycle.dataLifecycleBuilder()
+                                        .dataRetention(TimeValue.timeValueDays(SYSTEM_DATA_STREAM_RETENTION_DAYS))
                                 )
                         )
                         .build(),
diff --git a/modules/data-streams/src/internalClusterTest/java/org/elasticsearch/datastreams/lifecycle/ExplainDataStreamLifecycleIT.java b/modules/data-streams/src/internalClusterTest/java/org/elasticsearch/datastreams/lifecycle/ExplainDataStreamLifecycleIT.java
index 7f5fd14fd45d6..87fd46d715329 100644
--- a/modules/data-streams/src/internalClusterTest/java/org/elasticsearch/datastreams/lifecycle/ExplainDataStreamLifecycleIT.java
+++ b/modules/data-streams/src/internalClusterTest/java/org/elasticsearch/datastreams/lifecycle/ExplainDataStreamLifecycleIT.java
@@ -265,7 +265,7 @@ public void testExplainFailuresLifecycle() throws Exception {
             null,
             null,
             DataStreamLifecycle.Template.DATA_DEFAULT,
-            new DataStreamOptions.Template(new DataStreamFailureStore.Template(true))
+            new DataStreamOptions.Template(DataStreamFailureStore.builder().enabled(true).buildTemplate())
         );
         String dataStreamName = "metrics-foo";
         CreateDataStreamAction.Request createDataStreamRequest = new CreateDataStreamAction.Request(
@@ -400,7 +400,7 @@ public void testExplainLifecycleForIndicesWithErrors() throws Exception {
             null,
             null,
             lifecycle,
-            new DataStreamOptions.Template(new DataStreamFailureStore.Template(true))
+            new DataStreamOptions.Template(DataStreamFailureStore.builder().enabled(true).buildTemplate())
         );
         String dataStreamName = "metrics-foo";
         CreateDataStreamAction.Request createDataStreamRequest = new CreateDataStreamAction.Request(
@@ -501,7 +501,7 @@ public void testExplainDataStreamLifecycleForUnmanagedIndices() throws Exception
             List.of("metrics-foo*"),
             null,
             null,
-            DataStreamLifecycle.builder().enabled(false).buildTemplate()
+            DataStreamLifecycle.dataLifecycleBuilder().enabled(false).buildTemplate()
         );
         CreateDataStreamAction.Request createDataStreamRequest = new CreateDataStreamAction.Request(
             TEST_REQUEST_TIMEOUT,
diff --git a/modules/data-streams/src/test/java/org/elasticsearch/datastreams/DataStreamsStatsTests.java b/modules/data-streams/src/test/java/org/elasticsearch/datastreams/DataStreamsStatsTests.java
index e8fbb46b430ba..6f0f2935449da 100644
--- a/modules/data-streams/src/test/java/org/elasticsearch/datastreams/DataStreamsStatsTests.java
+++ b/modules/data-streams/src/test/java/org/elasticsearch/datastreams/DataStreamsStatsTests.java
@@ -27,7 +27,6 @@
 import org.elasticsearch.cluster.metadata.ComposableIndexTemplate;
 import org.elasticsearch.cluster.metadata.DataStreamFailureStore;
 import org.elasticsearch.cluster.metadata.DataStreamOptions;
-import org.elasticsearch.cluster.metadata.ResettableValue;
 import org.elasticsearch.cluster.metadata.Template;
 import org.elasticsearch.common.compress.CompressedXContent;
 import org.elasticsearch.index.mapper.extras.MapperExtrasPlugin;
@@ -271,11 +270,9 @@ private String createDataStream() throws Exception {
 
     private String createDataStream(boolean hidden, boolean failureStore) throws Exception {
         String dataStreamName = randomAlphaOfLength(10).toLowerCase(Locale.getDefault());
-        ResettableValue<DataStreamOptions.Template> failureStoreOptions = failureStore == false
-            ? ResettableValue.undefined()
-            : ResettableValue.create(
-                new DataStreamOptions.Template(ResettableValue.create(new DataStreamFailureStore.Template(ResettableValue.create(true))))
-            );
+        DataStreamOptions.Template failureStoreOptions = failureStore == false
+            ? null
+            : new DataStreamOptions.Template(DataStreamFailureStore.builder().enabled(true).buildTemplate());
         Template idxTemplate = new Template(null, new CompressedXContent("""
             {"properties":{"@timestamp":{"type":"date"},"data":{"type":"keyword"}}}
             """), null, null, failureStoreOptions);
diff --git a/modules/data-streams/src/test/java/org/elasticsearch/datastreams/MetadataIndexTemplateServiceTests.java b/modules/data-streams/src/test/java/org/elasticsearch/datastreams/MetadataIndexTemplateServiceTests.java
index a7414b8a231c4..8a6d510ad1bd8 100644
--- a/modules/data-streams/src/test/java/org/elasticsearch/datastreams/MetadataIndexTemplateServiceTests.java
+++ b/modules/data-streams/src/test/java/org/elasticsearch/datastreams/MetadataIndexTemplateServiceTests.java
@@ -144,7 +144,11 @@ public void testLifecycleComposition() {
         }
         // One lifecycle results to this lifecycle as the final
         {
-            DataStreamLifecycle.Template lifecycle = new DataStreamLifecycle.Template(true, randomRetention(), randomDownsampling());
+            DataStreamLifecycle.Template lifecycle = DataStreamLifecycle.createDataLifecycleTemplate(
+                true,
+                randomRetention(),
+                randomDownsampling()
+            );
             List<DataStreamLifecycle.Template> lifecycles = List.of(lifecycle);
             DataStreamLifecycle result = composeDataLifecycles(lifecycles).build();
             // Defaults to true
@@ -155,7 +159,11 @@ public void testLifecycleComposition() {
         // If the last lifecycle is missing a property (apart from enabled) we keep the latest from the previous ones
         // Enabled is always true unless it's explicitly set to false
         {
-            DataStreamLifecycle.Template lifecycle = new DataStreamLifecycle.Template(false, randomPositiveTimeValue(), randomRounds());
+            DataStreamLifecycle.Template lifecycle = DataStreamLifecycle.createDataLifecycleTemplate(
+                false,
+                randomPositiveTimeValue(),
+                randomRounds()
+            );
             List<DataStreamLifecycle.Template> lifecycles = List.of(lifecycle, DataStreamLifecycle.Template.DATA_DEFAULT);
             DataStreamLifecycle result = composeDataLifecycles(lifecycles).build();
             assertThat(result.enabled(), equalTo(true));
@@ -164,8 +172,16 @@ public void testLifecycleComposition() {
         }
         // If both lifecycle have all properties, then the latest one overwrites all the others
         {
-            DataStreamLifecycle.Template lifecycle1 = new DataStreamLifecycle.Template(false, randomPositiveTimeValue(), randomRounds());
-            DataStreamLifecycle.Template lifecycle2 = new DataStreamLifecycle.Template(true, randomPositiveTimeValue(), randomRounds());
+            DataStreamLifecycle.Template lifecycle1 = DataStreamLifecycle.createDataLifecycleTemplate(
+                false,
+                randomPositiveTimeValue(),
+                randomRounds()
+            );
+            DataStreamLifecycle.Template lifecycle2 = DataStreamLifecycle.createDataLifecycleTemplate(
+                true,
+                randomPositiveTimeValue(),
+                randomRounds()
+            );
             List<DataStreamLifecycle.Template> lifecycles = List.of(lifecycle1, lifecycle2);
             DataStreamLifecycle result = composeDataLifecycles(lifecycles).build();
             assertThat(result.enabled(), equalTo(lifecycle2.enabled()));
diff --git a/modules/data-streams/src/test/java/org/elasticsearch/datastreams/action/GetDataStreamsResponseTests.java b/modules/data-streams/src/test/java/org/elasticsearch/datastreams/action/GetDataStreamsResponseTests.java
index e6428b8d785b5..d0b2db97e3395 100644
--- a/modules/data-streams/src/test/java/org/elasticsearch/datastreams/action/GetDataStreamsResponseTests.java
+++ b/modules/data-streams/src/test/java/org/elasticsearch/datastreams/action/GetDataStreamsResponseTests.java
@@ -153,7 +153,7 @@ public void testResponseIlmAndDataStreamLifecycleRepresentation() throws Excepti
                 .setGeneration(3)
                 .setAllowCustomRouting(true)
                 .setIndexMode(IndexMode.STANDARD)
-                .setLifecycle(new DataStreamLifecycle(false, null, null))
+                .setLifecycle(DataStreamLifecycle.createDataLifecycle(false, null, null))
                 .setDataStreamOptions(DataStreamOptions.FAILURE_STORE_ENABLED)
                 .setFailureIndices(DataStream.DataStreamIndices.failureIndicesBuilder(failureStores).build())
                 .build();
diff --git a/modules/data-streams/src/test/java/org/elasticsearch/datastreams/lifecycle/DataStreamLifecycleFixtures.java b/modules/data-streams/src/test/java/org/elasticsearch/datastreams/lifecycle/DataStreamLifecycleFixtures.java
index 78bf365efa846..91afe3a15dce4 100644
--- a/modules/data-streams/src/test/java/org/elasticsearch/datastreams/lifecycle/DataStreamLifecycleFixtures.java
+++ b/modules/data-streams/src/test/java/org/elasticsearch/datastreams/lifecycle/DataStreamLifecycleFixtures.java
@@ -128,8 +128,8 @@ static void putComposableIndexTemplate(
         assertTrue(client().execute(TransportPutComposableIndexTemplateAction.TYPE, request).actionGet().isAcknowledged());
     }
 
-    static DataStreamLifecycle.Template randomLifecycleTemplate() {
-        return new DataStreamLifecycle.Template(
+    static DataStreamLifecycle.Template randomDataLifecycleTemplate() {
+        return DataStreamLifecycle.createDataLifecycleTemplate(
             frequently(),
             randomResettable(ESTestCase::randomTimeValue),
             randomResettable(DataStreamLifecycleFixtures::randomDownsamplingRounds)
diff --git a/modules/data-streams/src/test/java/org/elasticsearch/datastreams/lifecycle/DataStreamLifecycleServiceTests.java b/modules/data-streams/src/test/java/org/elasticsearch/datastreams/lifecycle/DataStreamLifecycleServiceTests.java
index 37301fbf403a8..6dc5a3eb526a9 100644
--- a/modules/data-streams/src/test/java/org/elasticsearch/datastreams/lifecycle/DataStreamLifecycleServiceTests.java
+++ b/modules/data-streams/src/test/java/org/elasticsearch/datastreams/lifecycle/DataStreamLifecycleServiceTests.java
@@ -206,7 +206,7 @@ public void testOperationsExecutedOnce() {
             numBackingIndices,
             2,
             settings(IndexVersion.current()),
-            DataStreamLifecycle.builder().dataRetention(TimeValue.ZERO).build(),
+            DataStreamLifecycle.dataLifecycleBuilder().dataRetention(TimeValue.ZERO).build(),
             now
         );
         builder.put(dataStream);
@@ -269,7 +269,7 @@ public void testRetentionNotExecutedDueToAge() {
             numBackingIndices,
             numFailureIndices,
             settings(IndexVersion.current()),
-            DataStreamLifecycle.builder().dataRetention(TimeValue.timeValueDays(700)).build(),
+            DataStreamLifecycle.dataLifecycleBuilder().dataRetention(TimeValue.timeValueDays(700)).build(),
             now
         );
         builder.put(dataStream);
@@ -304,7 +304,7 @@ public void testRetentionNotExecutedForTSIndicesWithinTimeBounds() {
             dataStream.copy()
                 .setName(dataStreamName)
                 .setGeneration(dataStream.getGeneration() + 1)
-                .setLifecycle(DataStreamLifecycle.builder().dataRetention(TimeValue.ZERO).build())
+                .setLifecycle(DataStreamLifecycle.dataLifecycleBuilder().dataRetention(TimeValue.ZERO).build())
                 .build()
         );
         clusterState = ClusterState.builder(clusterState).putProjectMetadata(builder).build();
@@ -343,7 +343,7 @@ public void testMergePolicyNotExecutedForTSIndicesWithinTimeBounds() {
             dataStream.copy()
                 .setName(dataStreamName)
                 .setGeneration(dataStream.getGeneration() + 1)
-                .setLifecycle(DataStreamLifecycle.builder().build())
+                .setLifecycle(DataStreamLifecycle.dataLifecycleBuilder().build())
                 .build()
         );
         clusterState = ClusterState.builder(clusterState).putProjectMetadata(builder).build();
@@ -378,7 +378,7 @@ public void testRetentionSkippedWhilstDownsamplingInProgress() {
             dataStreamName,
             numBackingIndices,
             settings(IndexVersion.current()),
-            DataStreamLifecycle.builder().dataRetention(TimeValue.timeValueMillis(0)).build(),
+            DataStreamLifecycle.dataLifecycleBuilder().dataRetention(TimeValue.timeValueMillis(0)).build(),
             now
         );
         builder.put(dataStream);
@@ -456,7 +456,7 @@ public void testIlmManagedIndicesAreSkipped() {
             Settings.builder()
                 .put(IndexMetadata.LIFECYCLE_NAME, "ILM_policy")
                 .put(IndexMetadata.SETTING_VERSION_CREATED, IndexVersion.current()),
-            DataStreamLifecycle.builder().dataRetention(TimeValue.ZERO).build(),
+            DataStreamLifecycle.dataLifecycleBuilder().dataRetention(TimeValue.ZERO).build(),
             now
         );
         builder.put(dataStream);
@@ -548,7 +548,7 @@ public void testErrorStoreIsClearedOnBackingIndexBecomingUnmanaged() {
             dataStreamName,
             numBackingIndices,
             settings(IndexVersion.current()),
-            DataStreamLifecycle.builder().dataRetention(TimeValue.timeValueDays(700)).build(),
+            DataStreamLifecycle.dataLifecycleBuilder().dataRetention(TimeValue.timeValueDays(700)).build(),
             now
         );
         // all backing indices are in the error store
@@ -586,7 +586,7 @@ public void testBackingIndicesFromMultipleDataStreamsInErrorStore() {
             ilmManagedDataStreamName,
             3,
             settings(IndexVersion.current()),
-            DataStreamLifecycle.builder().dataRetention(TimeValue.timeValueDays(700)).build(),
+            DataStreamLifecycle.dataLifecycleBuilder().dataRetention(TimeValue.timeValueDays(700)).build(),
             now
         );
         // all backing indices are in the error store
@@ -600,7 +600,7 @@ public void testBackingIndicesFromMultipleDataStreamsInErrorStore() {
             dataStreamWithBackingIndicesInErrorState,
             5,
             settings(IndexVersion.current()),
-            DataStreamLifecycle.builder().dataRetention(TimeValue.timeValueDays(700)).build(),
+            DataStreamLifecycle.dataLifecycleBuilder().dataRetention(TimeValue.timeValueDays(700)).build(),
             now
         );
         // put all backing indices in the error store
@@ -652,7 +652,7 @@ public void testForceMerge() throws Exception {
             numBackingIndices,
             settings(IndexVersion.current()).put(MergePolicyConfig.INDEX_MERGE_POLICY_FLOOR_SEGMENT_SETTING.getKey(), ONE_HUNDRED_MB)
                 .put(MergePolicyConfig.INDEX_MERGE_POLICY_MERGE_FACTOR_SETTING.getKey(), TARGET_MERGE_FACTOR_VALUE),
-            DataStreamLifecycle.builder().dataRetention(TimeValue.MAX_VALUE).build(),
+            DataStreamLifecycle.dataLifecycleBuilder().dataRetention(TimeValue.MAX_VALUE).build(),
             now
         );
         builder.put(dataStream);
@@ -754,7 +754,7 @@ public void testForceMergeRetries() throws Exception {
             numBackingIndices,
             settings(IndexVersion.current()).put(MergePolicyConfig.INDEX_MERGE_POLICY_FLOOR_SEGMENT_SETTING.getKey(), ONE_HUNDRED_MB)
                 .put(MergePolicyConfig.INDEX_MERGE_POLICY_MERGE_FACTOR_SETTING.getKey(), TARGET_MERGE_FACTOR_VALUE),
-            DataStreamLifecycle.builder().dataRetention(TimeValue.MAX_VALUE).build(),
+            DataStreamLifecycle.dataLifecycleBuilder().dataRetention(TimeValue.MAX_VALUE).build(),
             now
         );
         builder.put(dataStream);
@@ -916,7 +916,7 @@ public void testForceMergeDedup() throws Exception {
             1L,
             null,
             false,
-            DataStreamLifecycle.builder().dataRetention(TimeValue.MAX_VALUE).build()
+            DataStreamLifecycle.dataLifecycleBuilder().dataRetention(TimeValue.MAX_VALUE).build()
         );
 
         ProjectMetadata.Builder builder = ProjectMetadata.builder(randomProjectIdOrDefault()).put(newIndexMetadata, true).put(dataStream);
@@ -1091,7 +1091,7 @@ public void testMergePolicySettingsAreConfiguredBeforeForcemerge() throws Except
             dataStreamName,
             numBackingIndices,
             settings(IndexVersion.current()),
-            DataStreamLifecycle.builder().dataRetention(TimeValue.MAX_VALUE).build(),
+            DataStreamLifecycle.dataLifecycleBuilder().dataRetention(TimeValue.MAX_VALUE).build(),
             now
         );
         builder.put(dataStream);
@@ -1173,7 +1173,7 @@ public void testDownsampling() throws Exception {
                 .put(MergePolicyConfig.INDEX_MERGE_POLICY_MERGE_FACTOR_SETTING.getKey(), TARGET_MERGE_FACTOR_VALUE)
                 .put(IndexSettings.MODE.getKey(), IndexMode.TIME_SERIES)
                 .put("index.routing_path", "@timestamp"),
-            DataStreamLifecycle.builder()
+            DataStreamLifecycle.dataLifecycleBuilder()
                 .downsampling(
                     List.of(new DownsamplingRound(TimeValue.timeValueMillis(0), new DownsampleConfig(new DateHistogramInterval("5m"))))
                 )
@@ -1322,7 +1322,7 @@ public void testDownsamplingWhenTargetIndexNameClashYieldsException() throws Exc
                 .put(MergePolicyConfig.INDEX_MERGE_POLICY_MERGE_FACTOR_SETTING.getKey(), TARGET_MERGE_FACTOR_VALUE)
                 .put(IndexSettings.MODE.getKey(), IndexMode.TIME_SERIES)
                 .put("index.routing_path", "@timestamp"),
-            DataStreamLifecycle.builder()
+            DataStreamLifecycle.dataLifecycleBuilder()
                 .downsampling(
                     List.of(new DownsamplingRound(TimeValue.timeValueMillis(0), new DownsampleConfig(new DateHistogramInterval("5m"))))
                 )
@@ -1512,7 +1512,7 @@ public void testFailureStoreIsManagedEvenWhenDisabled() {
             numBackingIndices,
             2,
             settings(IndexVersion.current()),
-            DataStreamLifecycle.builder().dataRetention(TimeValue.ZERO).build(),
+            DataStreamLifecycle.dataLifecycleBuilder().dataRetention(TimeValue.ZERO).build(),
             now
         ).copy().setDataStreamOptions(DataStreamOptions.FAILURE_STORE_DISABLED).build(); // failure store is managed even when disabled
         builder.put(dataStream);
@@ -1581,7 +1581,7 @@ private ClusterState downsampleSetup(ProjectId projectId, String dataStreamName,
             2,
             settings(IndexVersion.current()).put(IndexSettings.MODE.getKey(), IndexMode.TIME_SERIES)
                 .put("index.routing_path", "@timestamp"),
-            DataStreamLifecycle.builder()
+            DataStreamLifecycle.dataLifecycleBuilder()
                 .downsampling(
                     List.of(new DownsamplingRound(TimeValue.timeValueMillis(0), new DownsampleConfig(new DateHistogramInterval("5m"))))
                 )
diff --git a/modules/data-streams/src/test/java/org/elasticsearch/datastreams/lifecycle/action/TransportGetDataStreamLifecycleStatsActionTests.java b/modules/data-streams/src/test/java/org/elasticsearch/datastreams/lifecycle/action/TransportGetDataStreamLifecycleStatsActionTests.java
index 6135411f14ea2..6f110078fb122 100644
--- a/modules/data-streams/src/test/java/org/elasticsearch/datastreams/lifecycle/action/TransportGetDataStreamLifecycleStatsActionTests.java
+++ b/modules/data-streams/src/test/java/org/elasticsearch/datastreams/lifecycle/action/TransportGetDataStreamLifecycleStatsActionTests.java
@@ -95,7 +95,7 @@ public void testMixedDataStreams() {
             "dsl-managed-index",
             numBackingIndices,
             settings(IndexVersion.current()),
-            DataStreamLifecycle.builder().dataRetention(TimeValue.timeValueDays(10)).build(),
+            DataStreamLifecycle.dataLifecycleBuilder().dataRetention(TimeValue.timeValueDays(10)).build(),
             Clock.systemUTC().millis()
         );
         indicesInError.add(dslDataStream.getIndices().get(randomInt(numBackingIndices - 1)).getName());
@@ -131,7 +131,7 @@ public void testMixedDataStreams() {
             IndexMetadata indexMetadata = indexMetaBuilder.build();
             builder.put(indexMetadata, false);
             backingIndices.add(indexMetadata.getIndex());
-            builder.put(newInstance(dataStreamName, backingIndices, 3, null, false, DataStreamLifecycle.builder().build()));
+            builder.put(newInstance(dataStreamName, backingIndices, 3, null, false, DataStreamLifecycle.dataLifecycleBuilder().build()));
         }
         ProjectMetadata project = builder.build();
         when(errorStore.getAllIndices(project.id())).thenReturn(indicesInError);
diff --git a/modules/data-streams/src/test/java/org/elasticsearch/datastreams/lifecycle/downsampling/DeleteSourceAndAddDownsampleToDSTests.java b/modules/data-streams/src/test/java/org/elasticsearch/datastreams/lifecycle/downsampling/DeleteSourceAndAddDownsampleToDSTests.java
index d860840dfe2c5..0bfbf76bbfca0 100644
--- a/modules/data-streams/src/test/java/org/elasticsearch/datastreams/lifecycle/downsampling/DeleteSourceAndAddDownsampleToDSTests.java
+++ b/modules/data-streams/src/test/java/org/elasticsearch/datastreams/lifecycle/downsampling/DeleteSourceAndAddDownsampleToDSTests.java
@@ -52,7 +52,7 @@ public void testDownsampleIndexMissingIsNoOp() {
             dataStreamName,
             numBackingIndices,
             settings(IndexVersion.current()),
-            DataStreamLifecycle.builder().dataRetention(TimeValue.MAX_VALUE).build(),
+            DataStreamLifecycle.dataLifecycleBuilder().dataRetention(TimeValue.MAX_VALUE).build(),
             now
         );
         builder.put(dataStream);
@@ -80,7 +80,7 @@ public void testDownsampleIsAddedToDSEvenIfSourceDeleted() {
             dataStreamName,
             numBackingIndices,
             settings(IndexVersion.current()),
-            DataStreamLifecycle.builder().dataRetention(TimeValue.MAX_VALUE).build(),
+            DataStreamLifecycle.dataLifecycleBuilder().dataRetention(TimeValue.MAX_VALUE).build(),
             now
         );
         String firstGenIndex = DataStream.getDefaultBackingIndexName(dataStreamName, 1);
@@ -125,7 +125,7 @@ public void testSourceIndexIsWriteIndexThrowsException() {
             dataStreamName,
             numBackingIndices,
             settings(IndexVersion.current()),
-            DataStreamLifecycle.builder().dataRetention(TimeValue.MAX_VALUE).build(),
+            DataStreamLifecycle.dataLifecycleBuilder().dataRetention(TimeValue.MAX_VALUE).build(),
             now
         );
         builder.put(dataStream);
@@ -159,7 +159,7 @@ public void testSourceIsDeleteAndDownsampleOriginationDateIsConfigured() {
             dataStreamName,
             numBackingIndices,
             settings(IndexVersion.current()),
-            DataStreamLifecycle.builder().dataRetention(TimeValue.MAX_VALUE).build(),
+            DataStreamLifecycle.dataLifecycleBuilder().dataRetention(TimeValue.MAX_VALUE).build(),
             now
         );
         String firstGenIndex = DataStream.getDefaultBackingIndexName(dataStreamName, 1);
@@ -221,7 +221,7 @@ public void testSourceWithoutLifecycleMetaAndDestWithOriginationDateAlreadyConfi
             dataStreamName,
             numBackingIndices,
             settings(IndexVersion.current()),
-            DataStreamLifecycle.builder().dataRetention(TimeValue.MAX_VALUE).build(),
+            DataStreamLifecycle.dataLifecycleBuilder().dataRetention(TimeValue.MAX_VALUE).build(),
             now
         );
         String firstGenIndex = DataStream.getDefaultBackingIndexName(dataStreamName, 1);
@@ -272,7 +272,7 @@ public void testSourceIndexIsDeleteEvenIfNotPartOfDSAnymore() {
             dataStreamName,
             numBackingIndices,
             settings(IndexVersion.current()),
-            DataStreamLifecycle.builder().dataRetention(TimeValue.MAX_VALUE).build(),
+            DataStreamLifecycle.dataLifecycleBuilder().dataRetention(TimeValue.MAX_VALUE).build(),
             now
         );
         String firstGenIndex = DataStream.getDefaultBackingIndexName(dataStreamName, 1);
diff --git a/server/src/main/java/org/elasticsearch/action/datastreams/lifecycle/PutDataStreamLifecycleAction.java b/server/src/main/java/org/elasticsearch/action/datastreams/lifecycle/PutDataStreamLifecycleAction.java
index 1dbfb97851aa6..45b71fd63cb16 100644
--- a/server/src/main/java/org/elasticsearch/action/datastreams/lifecycle/PutDataStreamLifecycleAction.java
+++ b/server/src/main/java/org/elasticsearch/action/datastreams/lifecycle/PutDataStreamLifecycleAction.java
@@ -149,7 +149,7 @@ public Request(
         ) {
             super(masterNodeTimeout, ackTimeout);
             this.names = names;
-            this.lifecycle = DataStreamLifecycle.builder()
+            this.lifecycle = DataStreamLifecycle.dataLifecycleBuilder()
                 .dataRetention(dataRetention)
                 .enabled(enabled == null || enabled)
                 .downsampling(downsampling)
diff --git a/server/src/main/java/org/elasticsearch/cluster/metadata/DataStreamLifecycle.java b/server/src/main/java/org/elasticsearch/cluster/metadata/DataStreamLifecycle.java
index fdae853292457..d578b3ce72bcb 100644
--- a/server/src/main/java/org/elasticsearch/cluster/metadata/DataStreamLifecycle.java
+++ b/server/src/main/java/org/elasticsearch/cluster/metadata/DataStreamLifecycle.java
@@ -86,7 +86,7 @@ public static boolean isDataStreamsLifecycleOnlyMode(final Settings settings) {
         Setting.Property.NodeScope
     );
 
-    public static final DataStreamLifecycle DEFAULT_DATA_LIFECYCLE = new DataStreamLifecycle(null, null, null);
+    public static final DataStreamLifecycle DEFAULT_DATA_LIFECYCLE = DataStreamLifecycle.createDataLifecycle(null, null, null);
 
     public static final String DATA_STREAM_LIFECYCLE_ORIGIN = "data_stream_lifecycle";
 
@@ -132,17 +132,27 @@ public static boolean isDataStreamsLifecycleOnlyMode(final Settings settings) {
     @Nullable
     private final List<DownsamplingRound> downsampling;
 
-    public DataStreamLifecycle(
-        @Nullable Boolean enabled,
-        @Nullable TimeValue dataRetention,
-        @Nullable List<DownsamplingRound> downsampling
-    ) {
+    // Visible for testing, preferably use the factory methods that are specialised by lifecycle type,
+    // for example for the data component.
+    DataStreamLifecycle(@Nullable Boolean enabled, @Nullable TimeValue dataRetention, @Nullable List<DownsamplingRound> downsampling) {
         this.enabled = enabled == null || enabled;
         this.dataRetention = dataRetention;
         DownsamplingRound.validateRounds(downsampling);
         this.downsampling = downsampling;
     }
 
+    /**
+     * This factory method creates a lifecycle applicable for the data index component of a data stream. This
+     * means it supports all configuration applicable for backing indices.
+     */
+    public static DataStreamLifecycle createDataLifecycle(
+        @Nullable Boolean enabled,
+        @Nullable TimeValue dataRetention,
+        @Nullable List<DownsamplingRound> downsampling
+    ) {
+        return new DataStreamLifecycle(enabled, dataRetention, downsampling);
+    }
+
     /**
      * Returns true, if this data stream lifecycle configuration is enabled, false otherwise
      */
@@ -542,6 +552,22 @@ public String toString() {
         }
     }
 
+    public static Template createDataLifecycleTemplate(
+        boolean enabled,
+        TimeValue dataRetention,
+        List<DataStreamLifecycle.DownsamplingRound> downsampling
+    ) {
+        return new Template(enabled, ResettableValue.create(dataRetention), ResettableValue.create(downsampling));
+    }
+
+    public static Template createDataLifecycleTemplate(
+        boolean enabled,
+        ResettableValue<TimeValue> dataRetention,
+        ResettableValue<List<DataStreamLifecycle.DownsamplingRound>> downsampling
+    ) {
+        return new Template(enabled, dataRetention, downsampling);
+    }
+
     /**
      * Represents the template configuration of a lifecycle. It supports explicitly resettable values
      * to allow value reset during template composition.
@@ -552,7 +578,7 @@ public record Template(
         ResettableValue<List<DataStreamLifecycle.DownsamplingRound>> downsampling
     ) implements ToXContentObject, Writeable {
 
-        public Template(boolean enabled, TimeValue dataRetention, List<DataStreamLifecycle.DownsamplingRound> downsampling) {
+        Template(boolean enabled, TimeValue dataRetention, List<DataStreamLifecycle.DownsamplingRound> downsampling) {
             this(enabled, ResettableValue.create(dataRetention), ResettableValue.create(downsampling));
         }
 
@@ -736,8 +762,8 @@ public static Builder builder(Template template) {
         return new Builder(template);
     }
 
-    public static Builder builder() {
-        return new Builder((DataStreamLifecycle) null);
+    public static Builder dataLifecycleBuilder() {
+        return new Builder();
     }
 
     /**
@@ -750,20 +776,18 @@ public static class Builder {
         @Nullable
         private List<DownsamplingRound> downsampling = null;
 
+        private Builder() {}
+
         private Builder(DataStreamLifecycle.Template template) {
-            if (template != null) {
-                enabled = template.enabled();
-                dataRetention = template.dataRetention().get();
-                downsampling = template.downsampling().get();
-            }
+            enabled = template.enabled();
+            dataRetention = template.dataRetention().get();
+            downsampling = template.downsampling().get();
         }
 
         private Builder(DataStreamLifecycle lifecycle) {
-            if (lifecycle != null) {
-                enabled = lifecycle.enabled();
-                dataRetention = lifecycle.dataRetention();
-                downsampling = lifecycle.downsampling();
-            }
+            enabled = lifecycle.enabled();
+            dataRetention = lifecycle.dataRetention();
+            downsampling = lifecycle.downsampling();
         }
 
         public Builder composeTemplate(DataStreamLifecycle.Template template) {
diff --git a/server/src/main/java/org/elasticsearch/cluster/metadata/Template.java b/server/src/main/java/org/elasticsearch/cluster/metadata/Template.java
index 444a3b60297d5..f4e0d32113a9a 100644
--- a/server/src/main/java/org/elasticsearch/cluster/metadata/Template.java
+++ b/server/src/main/java/org/elasticsearch/cluster/metadata/Template.java
@@ -61,7 +61,9 @@ public class Template implements SimpleDiffable<Template>, ToXContentObject {
             a[4] == null ? ResettableValue.undefined() : (ResettableValue<DataStreamOptions.Template>) a[4]
         )
     );
-    public static final DataStreamLifecycle.Template DISABLED_LIFECYCLE = DataStreamLifecycle.builder().enabled(false).buildTemplate();
+    public static final DataStreamLifecycle.Template DISABLED_LIFECYCLE = DataStreamLifecycle.dataLifecycleBuilder()
+        .enabled(false)
+        .buildTemplate();
 
     static {
         PARSER.declareObject(ConstructingObjectParser.optionalConstructorArg(), (p, c) -> Settings.fromXContent(p), SETTINGS);
diff --git a/server/src/test/java/org/elasticsearch/action/datastreams/GetDataStreamActionTests.java b/server/src/test/java/org/elasticsearch/action/datastreams/GetDataStreamActionTests.java
index a71d8ec57feea..7702a60ae459a 100644
--- a/server/src/test/java/org/elasticsearch/action/datastreams/GetDataStreamActionTests.java
+++ b/server/src/test/java/org/elasticsearch/action/datastreams/GetDataStreamActionTests.java
@@ -99,7 +99,7 @@ private static GetDataStreamAction.Response.DataStreamInfo newDataStreamInfo(boo
 
     private static DataStream newDataStreamInstance(boolean isSystem, TimeValue retention) {
         List<Index> indices = List.of(new Index(randomAlphaOfLength(10), randomAlphaOfLength(10)));
-        DataStreamLifecycle lifecycle = new DataStreamLifecycle(true, retention, null);
+        DataStreamLifecycle lifecycle = DataStreamLifecycle.createDataLifecycle(true, retention, null);
         return DataStream.builder(randomAlphaOfLength(50), indices)
             .setGeneration(randomLongBetween(1, 1000))
             .setMetadata(Map.of())
diff --git a/server/src/test/java/org/elasticsearch/action/datastreams/lifecycle/ExplainIndexDataStreamLifecycleTests.java b/server/src/test/java/org/elasticsearch/action/datastreams/lifecycle/ExplainIndexDataStreamLifecycleTests.java
index 7691f20b727c2..43a39f762ce69 100644
--- a/server/src/test/java/org/elasticsearch/action/datastreams/lifecycle/ExplainIndexDataStreamLifecycleTests.java
+++ b/server/src/test/java/org/elasticsearch/action/datastreams/lifecycle/ExplainIndexDataStreamLifecycleTests.java
@@ -200,7 +200,7 @@ public void testToXContent() throws Exception {
         TimeValue configuredRetention = TimeValue.timeValueDays(100);
         TimeValue globalDefaultRetention = TimeValue.timeValueDays(10);
         TimeValue globalMaxRetention = TimeValue.timeValueDays(50);
-        DataStreamLifecycle dataStreamLifecycle = new DataStreamLifecycle(true, configuredRetention, null);
+        DataStreamLifecycle dataStreamLifecycle = DataStreamLifecycle.createDataLifecycle(true, configuredRetention, null);
         {
             boolean isSystemDataStream = true;
             ExplainIndexDataStreamLifecycle explainIndexDataStreamLifecycle = createManagedIndexDataStreamLifecycleExplanation(
diff --git a/server/src/test/java/org/elasticsearch/action/datastreams/lifecycle/GetDataStreamLifecycleActionTests.java b/server/src/test/java/org/elasticsearch/action/datastreams/lifecycle/GetDataStreamLifecycleActionTests.java
index fdde637c783ff..32269d0bc5113 100644
--- a/server/src/test/java/org/elasticsearch/action/datastreams/lifecycle/GetDataStreamLifecycleActionTests.java
+++ b/server/src/test/java/org/elasticsearch/action/datastreams/lifecycle/GetDataStreamLifecycleActionTests.java
@@ -96,7 +96,7 @@ public void testDataStreamLifecycleToXContent() throws Exception {
         TimeValue globalDefaultRetention = TimeValue.timeValueDays(10);
         TimeValue globalMaxRetention = TimeValue.timeValueDays(50);
         DataStreamGlobalRetention globalRetention = new DataStreamGlobalRetention(globalDefaultRetention, globalMaxRetention);
-        DataStreamLifecycle lifecycle = new DataStreamLifecycle(true, configuredRetention, null);
+        DataStreamLifecycle lifecycle = DataStreamLifecycle.createDataLifecycle(true, configuredRetention, null);
         {
             boolean isInternalDataStream = true;
             GetDataStreamLifecycleAction.Response.DataStreamLifecycle explainIndexDataStreamLifecycle = createDataStreamLifecycle(
diff --git a/server/src/test/java/org/elasticsearch/cluster/metadata/ComponentTemplateTests.java b/server/src/test/java/org/elasticsearch/cluster/metadata/ComponentTemplateTests.java
index 9dae5e416b3ee..2a7eb712da344 100644
--- a/server/src/test/java/org/elasticsearch/cluster/metadata/ComponentTemplateTests.java
+++ b/server/src/test/java/org/elasticsearch/cluster/metadata/ComponentTemplateTests.java
@@ -90,7 +90,7 @@ public static ComponentTemplate randomInstance(boolean supportsDataStreams, Bool
             templateBuilder.aliases(randomAliases());
         }
         if (randomBoolean() && supportsDataStreams) {
-            templateBuilder.lifecycle(DataStreamLifecycleTemplateTests.randomLifecycleTemplate());
+            templateBuilder.lifecycle(DataStreamLifecycleTemplateTests.randomDataLifecycleTemplate());
         }
         if (randomBoolean() && supportsDataStreams) {
             templateBuilder.dataStreamOptions(randomDataStreamOptionsTemplate());
@@ -182,7 +182,7 @@ yield switch (randomIntBetween(0, 4)) {
                     );
                     case 3 -> new ComponentTemplate(
                         Template.builder(ot)
-                            .lifecycle(randomValueOtherThan(ot.lifecycle(), DataStreamLifecycleTemplateTests::randomLifecycleTemplate))
+                            .lifecycle(randomValueOtherThan(ot.lifecycle(), DataStreamLifecycleTemplateTests::randomDataLifecycleTemplate))
                             .build(),
                         orig.version(),
                         orig.metadata(),
@@ -273,7 +273,7 @@ public void testXContentSerializationWithRolloverAndEffectiveRetention() throws
         Settings settings = null;
         CompressedXContent mappings = null;
         Map<String, AliasMetadata> aliases = null;
-        ResettableValue<DataStreamOptions.Template> dataStreamOptions = ResettableValue.undefined();
+        DataStreamOptions.Template dataStreamOptions = null;
         if (randomBoolean()) {
             settings = randomSettings();
         }
@@ -284,7 +284,8 @@ public void testXContentSerializationWithRolloverAndEffectiveRetention() throws
             aliases = randomAliases();
         }
         if (randomBoolean()) {
-            dataStreamOptions = randomDataStreamOptionsTemplate();
+            // Do not set random lifecycle to avoid having data_retention and effective_retention in the response.
+            dataStreamOptions = new DataStreamOptions.Template(DataStreamFailureStore.builder().enabled(randomBoolean()).buildTemplate());
         }
         DataStreamLifecycle.Template lifecycle = DataStreamLifecycle.Template.DATA_DEFAULT;
         ComponentTemplate template = new ComponentTemplate(
diff --git a/server/src/test/java/org/elasticsearch/cluster/metadata/ComposableIndexTemplateTests.java b/server/src/test/java/org/elasticsearch/cluster/metadata/ComposableIndexTemplateTests.java
index 4bfde764fa3b1..b0978d7449884 100644
--- a/server/src/test/java/org/elasticsearch/cluster/metadata/ComposableIndexTemplateTests.java
+++ b/server/src/test/java/org/elasticsearch/cluster/metadata/ComposableIndexTemplateTests.java
@@ -74,7 +74,7 @@ public static ComposableIndexTemplate randomInstance() {
                 builder.aliases(randomAliases());
             }
             if (dataStreamTemplate != null && randomBoolean()) {
-                builder.lifecycle(DataStreamLifecycleTemplateTests.randomLifecycleTemplate());
+                builder.lifecycle(DataStreamLifecycleTemplateTests.randomDataLifecycleTemplate());
             }
             template = builder.build();
         }
@@ -174,7 +174,9 @@ public static ComposableIndexTemplate mutateTemplate(ComposableIndexTemplate ori
                                 .mappings(randomMappings(orig.getDataStreamTemplate()))
                                 .aliases(randomAliases())
                                 .lifecycle(
-                                    orig.getDataStreamTemplate() == null ? null : DataStreamLifecycleTemplateTests.randomLifecycleTemplate()
+                                    orig.getDataStreamTemplate() == null
+                                        ? null
+                                        : DataStreamLifecycleTemplateTests.randomDataLifecycleTemplate()
                                 )
                                 .build()
                         )
@@ -221,7 +223,7 @@ public void testXContentSerializationWithRolloverAndEffectiveRetention() throws
         Settings settings = null;
         CompressedXContent mappings = null;
         Map<String, AliasMetadata> aliases = null;
-        ResettableValue<DataStreamOptions.Template> dataStreamOptions = ResettableValue.undefined();
+        DataStreamOptions.Template dataStreamOptions = null;
         ComposableIndexTemplate.DataStreamTemplate dataStreamTemplate = randomDataStreamTemplate();
         if (randomBoolean()) {
             settings = randomSettings();
@@ -233,7 +235,8 @@ public void testXContentSerializationWithRolloverAndEffectiveRetention() throws
             aliases = randomAliases();
         }
         if (randomBoolean()) {
-            dataStreamOptions = ComponentTemplateTests.randomDataStreamOptionsTemplate();
+            // Do not set random lifecycle to avoid having data_retention and effective_retention in the response.
+            dataStreamOptions = new DataStreamOptions.Template(DataStreamFailureStore.builder().enabled(randomBoolean()).buildTemplate());
         }
         // We use the empty lifecycle so the global retention can be in effect
         DataStreamLifecycle.Template lifecycle = DataStreamLifecycle.Template.DATA_DEFAULT;
diff --git a/server/src/test/java/org/elasticsearch/cluster/metadata/DataStreamLifecycleTemplateTests.java b/server/src/test/java/org/elasticsearch/cluster/metadata/DataStreamLifecycleTemplateTests.java
index 10b7b54a9b8c9..4a8cd85229e7f 100644
--- a/server/src/test/java/org/elasticsearch/cluster/metadata/DataStreamLifecycleTemplateTests.java
+++ b/server/src/test/java/org/elasticsearch/cluster/metadata/DataStreamLifecycleTemplateTests.java
@@ -31,7 +31,7 @@ protected Writeable.Reader<DataStreamLifecycle.Template> instanceReader() {
 
     @Override
     protected DataStreamLifecycle.Template createTestInstance() {
-        return randomLifecycleTemplate();
+        return randomDataLifecycleTemplate();
     }
 
     @Override
@@ -57,7 +57,7 @@ public void testInvalidDownsamplingConfiguration() {
         {
             IllegalArgumentException exception = expectThrows(
                 IllegalArgumentException.class,
-                () -> DataStreamLifecycle.builder()
+                () -> DataStreamLifecycle.dataLifecycleBuilder()
                     .downsampling(
                         List.of(
                             new DataStreamLifecycle.DownsamplingRound(
@@ -80,7 +80,7 @@ public void testInvalidDownsamplingConfiguration() {
         {
             IllegalArgumentException exception = expectThrows(
                 IllegalArgumentException.class,
-                () -> DataStreamLifecycle.builder()
+                () -> DataStreamLifecycle.dataLifecycleBuilder()
                     .downsampling(
                         List.of(
                             new DataStreamLifecycle.DownsamplingRound(
@@ -100,7 +100,7 @@ public void testInvalidDownsamplingConfiguration() {
         {
             IllegalArgumentException exception = expectThrows(
                 IllegalArgumentException.class,
-                () -> DataStreamLifecycle.builder()
+                () -> DataStreamLifecycle.dataLifecycleBuilder()
                     .downsampling(
                         List.of(
                             new DataStreamLifecycle.DownsamplingRound(
@@ -120,14 +120,14 @@ public void testInvalidDownsamplingConfiguration() {
         {
             IllegalArgumentException exception = expectThrows(
                 IllegalArgumentException.class,
-                () -> DataStreamLifecycle.builder().downsampling((List.of())).buildTemplate()
+                () -> DataStreamLifecycle.dataLifecycleBuilder().downsampling((List.of())).buildTemplate()
             );
             assertThat(exception.getMessage(), equalTo("Downsampling configuration should have at least one round configured."));
         }
         {
             IllegalArgumentException exception = expectThrows(
                 IllegalArgumentException.class,
-                () -> DataStreamLifecycle.builder()
+                () -> DataStreamLifecycle.dataLifecycleBuilder()
                     .downsampling(
                         Stream.iterate(1, i -> i * 2)
                             .limit(12)
@@ -147,7 +147,7 @@ public void testInvalidDownsamplingConfiguration() {
         {
             IllegalArgumentException exception = expectThrows(
                 IllegalArgumentException.class,
-                () -> DataStreamLifecycle.builder()
+                () -> DataStreamLifecycle.dataLifecycleBuilder()
                     .downsampling(
                         List.of(
                             new DataStreamLifecycle.DownsamplingRound(
@@ -165,8 +165,8 @@ public void testInvalidDownsamplingConfiguration() {
         }
     }
 
-    public static DataStreamLifecycle.Template randomLifecycleTemplate() {
-        return new DataStreamLifecycle.Template(randomBoolean(), randomRetention(), randomDownsampling());
+    public static DataStreamLifecycle.Template randomDataLifecycleTemplate() {
+        return DataStreamLifecycle.createDataLifecycleTemplate(randomBoolean(), randomRetention(), randomDownsampling());
     }
 
     private static ResettableValue<TimeValue> randomRetention() {
diff --git a/server/src/test/java/org/elasticsearch/cluster/metadata/DataStreamLifecycleTests.java b/server/src/test/java/org/elasticsearch/cluster/metadata/DataStreamLifecycleTests.java
index cc4c1e022f486..0e9aaab5906d9 100644
--- a/server/src/test/java/org/elasticsearch/cluster/metadata/DataStreamLifecycleTests.java
+++ b/server/src/test/java/org/elasticsearch/cluster/metadata/DataStreamLifecycleTests.java
@@ -53,7 +53,7 @@ protected Writeable.Reader<DataStreamLifecycle> instanceReader() {
 
     @Override
     protected DataStreamLifecycle createTestInstance() {
-        return randomLifecycle();
+        return randomDataLifecycle();
     }
 
     @Override
@@ -172,7 +172,7 @@ public void testInvalidDownsamplingConfiguration() {
         {
             IllegalArgumentException exception = expectThrows(
                 IllegalArgumentException.class,
-                () -> DataStreamLifecycle.builder()
+                () -> DataStreamLifecycle.dataLifecycleBuilder()
                     .downsampling(
                         List.of(
                             new DataStreamLifecycle.DownsamplingRound(
@@ -195,7 +195,7 @@ public void testInvalidDownsamplingConfiguration() {
         {
             IllegalArgumentException exception = expectThrows(
                 IllegalArgumentException.class,
-                () -> DataStreamLifecycle.builder()
+                () -> DataStreamLifecycle.dataLifecycleBuilder()
                     .downsampling(
                         List.of(
                             new DataStreamLifecycle.DownsamplingRound(
@@ -215,7 +215,7 @@ public void testInvalidDownsamplingConfiguration() {
         {
             IllegalArgumentException exception = expectThrows(
                 IllegalArgumentException.class,
-                () -> DataStreamLifecycle.builder()
+                () -> DataStreamLifecycle.dataLifecycleBuilder()
                     .downsampling(
                         List.of(
                             new DataStreamLifecycle.DownsamplingRound(
@@ -235,14 +235,14 @@ public void testInvalidDownsamplingConfiguration() {
         {
             IllegalArgumentException exception = expectThrows(
                 IllegalArgumentException.class,
-                () -> DataStreamLifecycle.builder().downsampling((List.of())).build()
+                () -> DataStreamLifecycle.dataLifecycleBuilder().downsampling((List.of())).build()
             );
             assertThat(exception.getMessage(), equalTo("Downsampling configuration should have at least one round configured."));
         }
         {
             IllegalArgumentException exception = expectThrows(
                 IllegalArgumentException.class,
-                () -> DataStreamLifecycle.builder()
+                () -> DataStreamLifecycle.dataLifecycleBuilder()
                     .downsampling(
                         Stream.iterate(1, i -> i * 2)
                             .limit(12)
@@ -262,7 +262,7 @@ public void testInvalidDownsamplingConfiguration() {
         {
             IllegalArgumentException exception = expectThrows(
                 IllegalArgumentException.class,
-                () -> DataStreamLifecycle.builder()
+                () -> DataStreamLifecycle.dataLifecycleBuilder()
                     .downsampling(
                         List.of(
                             new DataStreamLifecycle.DownsamplingRound(
@@ -283,7 +283,9 @@ public void testInvalidDownsamplingConfiguration() {
     public void testEffectiveRetention() {
         // No retention in the data stream lifecycle
         {
-            DataStreamLifecycle noRetentionLifecycle = DataStreamLifecycle.builder().downsampling(randomDownsampling()).build();
+            DataStreamLifecycle noRetentionLifecycle = DataStreamLifecycle.dataLifecycleBuilder()
+                .downsampling(randomDownsampling())
+                .build();
             TimeValue maxRetention = TimeValue.timeValueDays(randomIntBetween(50, 100));
             TimeValue defaultRetention = TimeValue.timeValueDays(randomIntBetween(1, 50));
             Tuple<TimeValue, DataStreamLifecycle.RetentionSource> effectiveDataRetentionWithSource = noRetentionLifecycle
@@ -316,7 +318,7 @@ public void testEffectiveRetention() {
         // With retention in the data stream lifecycle
         {
             TimeValue dataStreamRetention = TimeValue.timeValueDays(randomIntBetween(5, 100));
-            DataStreamLifecycle lifecycleRetention = DataStreamLifecycle.builder()
+            DataStreamLifecycle lifecycleRetention = DataStreamLifecycle.dataLifecycleBuilder()
                 .dataRetention(dataStreamRetention)
                 .downsampling(randomDownsampling())
                 .build();
@@ -365,7 +367,7 @@ public void testEffectiveRetention() {
                 TimeValue.timeValueDays(7),
                 TimeValue.timeValueDays(90)
             );
-            DataStreamLifecycle lifecycle = DataStreamLifecycle.builder().dataRetention(dataStreamRetention).build();
+            DataStreamLifecycle lifecycle = DataStreamLifecycle.dataLifecycleBuilder().dataRetention(dataStreamRetention).build();
 
             // Verify that global retention should have kicked in
             var effectiveDataRetentionWithSource = lifecycle.getEffectiveDataRetentionWithSource(globalRetention, false);
@@ -398,8 +400,8 @@ public void testEffectiveRetentionParams() {
         }
     }
 
-    public static DataStreamLifecycle randomLifecycle() {
-        return DataStreamLifecycle.builder()
+    public static DataStreamLifecycle randomDataLifecycle() {
+        return DataStreamLifecycle.dataLifecycleBuilder()
             .dataRetention(randomBoolean() ? null : randomTimeValue(1, 365, TimeUnit.DAYS))
             .downsampling(randomBoolean() ? null : randomDownsampling())
             .enabled(randomBoolean())
diff --git a/server/src/test/java/org/elasticsearch/cluster/metadata/DataStreamLifecycleWithRetentionWarningsTests.java b/server/src/test/java/org/elasticsearch/cluster/metadata/DataStreamLifecycleWithRetentionWarningsTests.java
index 51b8b22c5686a..d3224d7734060 100644
--- a/server/src/test/java/org/elasticsearch/cluster/metadata/DataStreamLifecycleWithRetentionWarningsTests.java
+++ b/server/src/test/java/org/elasticsearch/cluster/metadata/DataStreamLifecycleWithRetentionWarningsTests.java
@@ -58,13 +58,13 @@ public void testNoHeaderWarning() {
         ThreadContext threadContext = new ThreadContext(Settings.EMPTY);
         HeaderWarning.setThreadContext(threadContext);
 
-        DataStreamLifecycle noRetentionLifecycle = DataStreamLifecycle.builder().downsampling(randomDownsampling()).build();
+        DataStreamLifecycle noRetentionLifecycle = DataStreamLifecycle.dataLifecycleBuilder().downsampling(randomDownsampling()).build();
         noRetentionLifecycle.addWarningHeaderIfDataRetentionNotEffective(null, randomBoolean());
         Map<String, List<String>> responseHeaders = threadContext.getResponseHeaders();
         assertThat(responseHeaders.isEmpty(), is(true));
 
         TimeValue dataStreamRetention = TimeValue.timeValueDays(randomIntBetween(5, 100));
-        DataStreamLifecycle lifecycleWithRetention = DataStreamLifecycle.builder()
+        DataStreamLifecycle lifecycleWithRetention = DataStreamLifecycle.dataLifecycleBuilder()
             .dataRetention(dataStreamRetention)
             .downsampling(randomDownsampling())
             .build();
@@ -81,7 +81,7 @@ public void testDefaultRetentionHeaderWarning() {
         ThreadContext threadContext = new ThreadContext(Settings.EMPTY);
         HeaderWarning.setThreadContext(threadContext);
 
-        DataStreamLifecycle noRetentionLifecycle = DataStreamLifecycle.builder().downsampling(randomDownsampling()).build();
+        DataStreamLifecycle noRetentionLifecycle = DataStreamLifecycle.dataLifecycleBuilder().downsampling(randomDownsampling()).build();
         DataStreamGlobalRetention globalRetention = new DataStreamGlobalRetention(
             randomTimeValue(2, 10, TimeUnit.DAYS),
             randomBoolean() ? null : TimeValue.timeValueDays(20)
@@ -103,7 +103,7 @@ public void testMaxRetentionHeaderWarning() {
         ThreadContext threadContext = new ThreadContext(Settings.EMPTY);
         HeaderWarning.setThreadContext(threadContext);
         TimeValue maxRetention = randomTimeValue(2, 100, TimeUnit.DAYS);
-        DataStreamLifecycle lifecycle = DataStreamLifecycle.builder()
+        DataStreamLifecycle lifecycle = DataStreamLifecycle.dataLifecycleBuilder()
             .dataRetention(randomBoolean() ? null : TimeValue.timeValueDays(maxRetention.days() + 1))
             .downsampling(randomDownsampling())
             .build();
@@ -223,7 +223,7 @@ public void testValidateLifecycleComponentTemplateWithWarning() {
                         "component-template",
                         new ComponentTemplate(
                             Template.builder()
-                                .lifecycle(DataStreamLifecycle.builder().dataRetention(randomTimeValue(2, 100, TimeUnit.DAYS)))
+                                .lifecycle(DataStreamLifecycle.dataLifecycleBuilder().dataRetention(randomTimeValue(2, 100, TimeUnit.DAYS)))
                                 .build(),
                             null,
                             null
diff --git a/server/src/test/java/org/elasticsearch/cluster/metadata/DataStreamTests.java b/server/src/test/java/org/elasticsearch/cluster/metadata/DataStreamTests.java
index fc0b9a291549b..d8309b604bd6b 100644
--- a/server/src/test/java/org/elasticsearch/cluster/metadata/DataStreamTests.java
+++ b/server/src/test/java/org/elasticsearch/cluster/metadata/DataStreamTests.java
@@ -140,7 +140,7 @@ protected DataStream mutateInstance(DataStream instance) {
                 : randomValueOtherThan(indexMode, () -> randomFrom(IndexMode.values()));
             case 9 -> lifecycle = randomBoolean() && lifecycle != null
                 ? null
-                : DataStreamLifecycle.builder().dataRetention(randomPositiveTimeValue()).build();
+                : DataStreamLifecycle.dataLifecycleBuilder().dataRetention(randomPositiveTimeValue()).build();
             case 10 -> failureIndices = randomValueOtherThan(failureIndices, DataStreamTestHelper::randomIndexInstances);
             case 11 -> dataStreamOptions = dataStreamOptions.isEmpty() ? new DataStreamOptions(new DataStreamFailureStore(randomBoolean()))
                 : randomBoolean() ? DataStreamOptions.EMPTY
@@ -1519,7 +1519,7 @@ public TimeValue dataRetention() {
                 dataStreamName,
                 creationAndRolloverTimes,
                 settings(IndexVersion.current()).put(IndexMetadata.LIFECYCLE_NAME, "ILM_policy"),
-                DataStreamLifecycle.builder().dataRetention(TimeValue.ZERO).build()
+                DataStreamLifecycle.dataLifecycleBuilder().dataRetention(TimeValue.ZERO).build()
             );
             Metadata metadataWithIlm = builderWithIlm.build();
 
@@ -1784,7 +1784,7 @@ public void testGetDownsampleRounds() {
                 creationAndRolloverTimes,
                 settings(IndexVersion.current()).put(IndexSettings.MODE.getKey(), IndexMode.TIME_SERIES)
                     .put("index.routing_path", "@timestamp"),
-                DataStreamLifecycle.builder()
+                DataStreamLifecycle.dataLifecycleBuilder()
                     .downsampling(
                         List.of(
                             new DataStreamLifecycle.DownsamplingRound(
@@ -1844,7 +1844,7 @@ public void testGetDownsampleRounds() {
                 creationAndRolloverTimes,
                 // no TSDB settings
                 settings(IndexVersion.current()),
-                DataStreamLifecycle.builder()
+                DataStreamLifecycle.dataLifecycleBuilder()
                     .downsampling(
                         List.of(
                             new DataStreamLifecycle.DownsamplingRound(
@@ -1910,7 +1910,7 @@ public void testGetDownsampleRounds() {
                 creationAndRolloverTimes,
                 settings(IndexVersion.current()).put(IndexSettings.MODE.getKey(), IndexMode.TIME_SERIES)
                     .put("index.routing_path", "@timestamp"),
-                DataStreamLifecycle.builder().build()
+                DataStreamLifecycle.dataLifecycleBuilder().build()
             );
             Metadata metadata = builder.build();
 
@@ -1942,7 +1942,7 @@ public void testIsIndexManagedByDataStreamLifecycle() {
             dataStreamName,
             creationAndRolloverTimes,
             settings(IndexVersion.current()),
-            DataStreamLifecycle.builder().dataRetention(TimeValue.ZERO).build()
+            DataStreamLifecycle.dataLifecycleBuilder().dataRetention(TimeValue.ZERO).build()
         );
         Metadata metadata = builder.build();
 
@@ -2316,7 +2316,7 @@ public void testWriteFailureIndex() {
             system,
             randomBoolean(),
             randomBoolean() ? IndexMode.STANDARD : IndexMode.TIME_SERIES,
-            DataStreamLifecycleTests.randomLifecycle(),
+            DataStreamLifecycleTests.randomDataLifecycle(),
             DataStreamOptions.FAILURE_STORE_DISABLED,
             List.of(),
             replicated == false && randomBoolean(),
@@ -2334,7 +2334,7 @@ public void testWriteFailureIndex() {
             system,
             randomBoolean(),
             randomBoolean() ? IndexMode.STANDARD : IndexMode.TIME_SERIES,
-            DataStreamLifecycleTests.randomLifecycle(),
+            DataStreamLifecycleTests.randomDataLifecycle(),
             DataStreamOptions.FAILURE_STORE_ENABLED,
             List.of(),
             replicated == false && randomBoolean(),
@@ -2359,7 +2359,7 @@ public void testWriteFailureIndex() {
             system,
             randomBoolean(),
             randomBoolean() ? IndexMode.STANDARD : IndexMode.TIME_SERIES,
-            DataStreamLifecycleTests.randomLifecycle(),
+            DataStreamLifecycleTests.randomDataLifecycle(),
             DataStreamOptions.FAILURE_STORE_ENABLED,
             failureIndices,
             replicated == false && randomBoolean(),
@@ -2383,7 +2383,7 @@ public void testIsFailureIndex() {
             system,
             randomBoolean(),
             randomBoolean() ? IndexMode.STANDARD : IndexMode.TIME_SERIES,
-            DataStreamLifecycleTests.randomLifecycle(),
+            DataStreamLifecycleTests.randomDataLifecycle(),
             DataStreamOptions.FAILURE_STORE_DISABLED,
             List.of(),
             replicated == false && randomBoolean(),
@@ -2405,7 +2405,7 @@ public void testIsFailureIndex() {
             system,
             randomBoolean(),
             randomBoolean() ? IndexMode.STANDARD : IndexMode.TIME_SERIES,
-            DataStreamLifecycleTests.randomLifecycle(),
+            DataStreamLifecycleTests.randomDataLifecycle(),
             DataStreamOptions.FAILURE_STORE_ENABLED,
             List.of(),
             replicated == false && randomBoolean(),
@@ -2436,7 +2436,7 @@ public void testIsFailureIndex() {
             system,
             randomBoolean(),
             randomBoolean() ? IndexMode.STANDARD : IndexMode.TIME_SERIES,
-            DataStreamLifecycleTests.randomLifecycle(),
+            DataStreamLifecycleTests.randomDataLifecycle(),
             DataStreamOptions.FAILURE_STORE_ENABLED,
             failureIndices,
             replicated == false && randomBoolean(),
diff --git a/server/src/test/java/org/elasticsearch/cluster/metadata/MetadataDataStreamsServiceTests.java b/server/src/test/java/org/elasticsearch/cluster/metadata/MetadataDataStreamsServiceTests.java
index a95863ceda0fe..936831f15baf5 100644
--- a/server/src/test/java/org/elasticsearch/cluster/metadata/MetadataDataStreamsServiceTests.java
+++ b/server/src/test/java/org/elasticsearch/cluster/metadata/MetadataDataStreamsServiceTests.java
@@ -474,7 +474,7 @@ public void testRemoveBackingIndexThatDoesntExist() {
 
     public void testUpdateLifecycle() {
         String dataStream = randomAlphaOfLength(5);
-        DataStreamLifecycle lifecycle = DataStreamLifecycle.builder().dataRetention(randomPositiveTimeValue()).build();
+        DataStreamLifecycle lifecycle = DataStreamLifecycle.dataLifecycleBuilder().dataRetention(randomPositiveTimeValue()).build();
         final var projectId = randomProjectIdOrDefault();
         ProjectMetadata before = DataStreamTestHelper.getClusterStateWithDataStreams(
             projectId,
diff --git a/server/src/test/java/org/elasticsearch/cluster/metadata/MetadataIndexTemplateServiceTests.java b/server/src/test/java/org/elasticsearch/cluster/metadata/MetadataIndexTemplateServiceTests.java
index 207cd8f2dc3ef..ce4b584c9fd01 100644
--- a/server/src/test/java/org/elasticsearch/cluster/metadata/MetadataIndexTemplateServiceTests.java
+++ b/server/src/test/java/org/elasticsearch/cluster/metadata/MetadataIndexTemplateServiceTests.java
@@ -1490,13 +1490,13 @@ public void testResolveLifecycle() throws Exception {
 
         DataStreamLifecycle.Template emptyLifecycle = DataStreamLifecycle.Template.DATA_DEFAULT;
 
-        DataStreamLifecycle.Template lifecycle30d = DataStreamLifecycle.builder()
+        DataStreamLifecycle.Template lifecycle30d = DataStreamLifecycle.dataLifecycleBuilder()
             .dataRetention(TimeValue.timeValueDays(30))
             .buildTemplate();
         String ct30d = "ct_30d";
         project = addComponentTemplate(service, project, ct30d, lifecycle30d);
 
-        DataStreamLifecycle.Template lifecycle45d = DataStreamLifecycle.builder()
+        DataStreamLifecycle.Template lifecycle45d = DataStreamLifecycle.dataLifecycleBuilder()
             .dataRetention(TimeValue.timeValueDays(45))
             .downsampling(
                 List.of(
@@ -1510,7 +1510,7 @@ public void testResolveLifecycle() throws Exception {
         String ct45d = "ct_45d";
         project = addComponentTemplate(service, project, ct45d, lifecycle45d);
 
-        DataStreamLifecycle.Template lifecycleNullRetention = new DataStreamLifecycle.Template(
+        DataStreamLifecycle.Template lifecycleNullRetention = DataStreamLifecycle.createDataLifecycleTemplate(
             true,
             ResettableValue.reset(),
             ResettableValue.undefined()
@@ -1522,7 +1522,12 @@ public void testResolveLifecycle() throws Exception {
         project = addComponentTemplate(service, project, ctEmptyLifecycle, emptyLifecycle);
 
         String ctDisabledLifecycle = "ct_disabled_lifecycle";
-        project = addComponentTemplate(service, project, ctDisabledLifecycle, DataStreamLifecycle.builder().enabled(false).buildTemplate());
+        project = addComponentTemplate(
+            service,
+            project,
+            ctDisabledLifecycle,
+            DataStreamLifecycle.dataLifecycleBuilder().enabled(false).buildTemplate()
+        );
 
         String ctNoLifecycle = "ct_no_lifecycle";
         project = addComponentTemplate(service, project, ctNoLifecycle, (DataStreamLifecycle.Template) null);
@@ -1554,7 +1559,7 @@ public void testResolveLifecycle() throws Exception {
             project,
             List.of(ctEmptyLifecycle, ct45d),
             lifecycle30d,
-            DataStreamLifecycle.builder()
+            DataStreamLifecycle.dataLifecycleBuilder()
                 .dataRetention(lifecycle30d.dataRetention())
                 .downsampling(lifecycle45d.downsampling())
                 .buildTemplate()
@@ -1578,7 +1583,7 @@ public void testResolveLifecycle() throws Exception {
             project,
             List.of(ctEmptyLifecycle, ct45d),
             lifecycleNullRetention,
-            DataStreamLifecycle.builder().downsampling(lifecycle45d.downsampling()).buildTemplate()
+            DataStreamLifecycle.dataLifecycleBuilder().downsampling(lifecycle45d.downsampling()).buildTemplate()
         );
 
         // Component A: "lifecycle": {"retention": "30d"}
@@ -1589,8 +1594,8 @@ public void testResolveLifecycle() throws Exception {
             service,
             project,
             List.of(ct30d, ct45d),
-            DataStreamLifecycle.builder().enabled(false).buildTemplate(),
-            DataStreamLifecycle.builder()
+            DataStreamLifecycle.dataLifecycleBuilder().enabled(false).buildTemplate(),
+            DataStreamLifecycle.dataLifecycleBuilder()
                 .dataRetention(lifecycle45d.dataRetention())
                 .downsampling(lifecycle45d.downsampling())
                 .enabled(false)
@@ -1606,7 +1611,7 @@ public void testResolveLifecycle() throws Exception {
             project,
             List.of(ct30d, ctDisabledLifecycle),
             null,
-            DataStreamLifecycle.builder().dataRetention(lifecycle30d.dataRetention()).enabled(false).buildTemplate()
+            DataStreamLifecycle.dataLifecycleBuilder().dataRetention(lifecycle30d.dataRetention()).enabled(false).buildTemplate()
         );
 
         // Component A: "lifecycle": {"retention": "30d"}
@@ -2007,7 +2012,7 @@ public void testIndexTemplateFailsToAdd() throws Exception {
         ProjectMetadata project = ProjectMetadata.builder(randomProjectIdOrDefault()).build();
 
         ComponentTemplate ct = new ComponentTemplate(
-            Template.builder().lifecycle(DataStreamLifecycle.builder().dataRetention(randomPositiveTimeValue())).build(),
+            Template.builder().lifecycle(DataStreamLifecycle.dataLifecycleBuilder().dataRetention(randomPositiveTimeValue())).build(),
             null,
             null
         );
diff --git a/test/framework/src/main/java/org/elasticsearch/cluster/metadata/DataStreamTestHelper.java b/test/framework/src/main/java/org/elasticsearch/cluster/metadata/DataStreamTestHelper.java
index acc582e96474a..ef9b6b7890bd2 100644
--- a/test/framework/src/main/java/org/elasticsearch/cluster/metadata/DataStreamTestHelper.java
+++ b/test/framework/src/main/java/org/elasticsearch/cluster/metadata/DataStreamTestHelper.java
@@ -363,7 +363,7 @@ public static DataStream randomInstance(String dataStreamName, LongSupplier time
             timeProvider,
             randomBoolean(),
             randomBoolean() ? IndexMode.STANDARD : null, // IndexMode.TIME_SERIES triggers validation that many unit tests doesn't pass
-            randomBoolean() ? DataStreamLifecycle.builder().dataRetention(randomPositiveTimeValue()).build() : null,
+            randomBoolean() ? DataStreamLifecycle.dataLifecycleBuilder().dataRetention(randomPositiveTimeValue()).build() : null,
             failureStore ? DataStreamOptions.FAILURE_STORE_ENABLED : DataStreamOptions.EMPTY,
             DataStream.DataStreamIndices.backingIndicesBuilder(indices)
                 .setRolloverOnWrite(replicated == false && randomBoolean())
diff --git a/x-pack/plugin/core/src/internalClusterTest/java/org/elasticsearch/xpack/core/action/DataStreamLifecycleUsageTransportActionIT.java b/x-pack/plugin/core/src/internalClusterTest/java/org/elasticsearch/xpack/core/action/DataStreamLifecycleUsageTransportActionIT.java
index 24a59ad1c6393..ddcadeb6742e4 100644
--- a/x-pack/plugin/core/src/internalClusterTest/java/org/elasticsearch/xpack/core/action/DataStreamLifecycleUsageTransportActionIT.java
+++ b/x-pack/plugin/core/src/internalClusterTest/java/org/elasticsearch/xpack/core/action/DataStreamLifecycleUsageTransportActionIT.java
@@ -133,7 +133,7 @@ public void testAction() throws Exception {
                 boolean systemDataStream = rarely();
                 if (hasLifecycle) {
                     if (randomBoolean()) {
-                        lifecycle = new DataStreamLifecycle(null, null, null);
+                        lifecycle = DataStreamLifecycle.DEFAULT_DATA_LIFECYCLE;
                         dataStreamsWithLifecycleCount.incrementAndGet();
                         if (useDefaultRetention && systemDataStream == false) {
                             dataStreamsWithDefaultRetentionCount.incrementAndGet();
@@ -155,7 +155,7 @@ public void testAction() throws Exception {
                             }
                             atLeastOne = true;
                         }
-                        lifecycle = DataStreamLifecycle.builder()
+                        lifecycle = DataStreamLifecycle.dataLifecycleBuilder()
                             .dataRetention(TimeValue.timeValueMillis(retentionMillis))
                             .enabled(isEnabled)
                             .build();
diff --git a/x-pack/plugin/core/src/test/java/org/elasticsearch/xpack/core/datastreams/DataStreamLifecycleFeatureSetUsageTests.java b/x-pack/plugin/core/src/test/java/org/elasticsearch/xpack/core/datastreams/DataStreamLifecycleFeatureSetUsageTests.java
index bd203a2143d73..52d9f26e1f7d8 100644
--- a/x-pack/plugin/core/src/test/java/org/elasticsearch/xpack/core/datastreams/DataStreamLifecycleFeatureSetUsageTests.java
+++ b/x-pack/plugin/core/src/test/java/org/elasticsearch/xpack/core/datastreams/DataStreamLifecycleFeatureSetUsageTests.java
@@ -117,7 +117,7 @@ public void testLifecycleStats() {
                 1L,
                 null,
                 false,
-                new DataStreamLifecycle(true, TimeValue.timeValueSeconds(50), null)
+                DataStreamLifecycle.createDataLifecycle(true, TimeValue.timeValueSeconds(50), null)
             ),
             DataStreamTestHelper.newInstance(
                 randomAlphaOfLength(10),
@@ -125,7 +125,7 @@ public void testLifecycleStats() {
                 1L,
                 null,
                 false,
-                new DataStreamLifecycle(true, TimeValue.timeValueMillis(150), null)
+                DataStreamLifecycle.createDataLifecycle(true, TimeValue.timeValueMillis(150), null)
             ),
             DataStreamTestHelper.newInstance(
                 randomAlphaOfLength(10),
@@ -133,7 +133,7 @@ public void testLifecycleStats() {
                 1L,
                 null,
                 false,
-                new DataStreamLifecycle(false, TimeValue.timeValueSeconds(5), null)
+                DataStreamLifecycle.createDataLifecycle(false, TimeValue.timeValueSeconds(5), null)
             ),
             DataStreamTestHelper.newInstance(
                 randomAlphaOfLength(10),
diff --git a/x-pack/plugin/downsample/src/internalClusterTest/java/org/elasticsearch/xpack/downsample/DataStreamLifecycleDownsampleDisruptionIT.java b/x-pack/plugin/downsample/src/internalClusterTest/java/org/elasticsearch/xpack/downsample/DataStreamLifecycleDownsampleDisruptionIT.java
index 470f13a2d8c2e..2828af4181e95 100644
--- a/x-pack/plugin/downsample/src/internalClusterTest/java/org/elasticsearch/xpack/downsample/DataStreamLifecycleDownsampleDisruptionIT.java
+++ b/x-pack/plugin/downsample/src/internalClusterTest/java/org/elasticsearch/xpack/downsample/DataStreamLifecycleDownsampleDisruptionIT.java
@@ -59,7 +59,7 @@ public void testDataStreamLifecycleDownsampleRollingRestart() throws Exception {
         ensureGreen();
 
         final String dataStreamName = "metrics-foo";
-        DataStreamLifecycle.Template lifecycle = DataStreamLifecycle.builder()
+        DataStreamLifecycle.Template lifecycle = DataStreamLifecycle.dataLifecycleBuilder()
             .downsampling(
                 List.of(
                     new DataStreamLifecycle.DownsamplingRound(
diff --git a/x-pack/plugin/downsample/src/internalClusterTest/java/org/elasticsearch/xpack/downsample/DataStreamLifecycleDownsampleIT.java b/x-pack/plugin/downsample/src/internalClusterTest/java/org/elasticsearch/xpack/downsample/DataStreamLifecycleDownsampleIT.java
index ddc39cb81a1df..13ae6032e9721 100644
--- a/x-pack/plugin/downsample/src/internalClusterTest/java/org/elasticsearch/xpack/downsample/DataStreamLifecycleDownsampleIT.java
+++ b/x-pack/plugin/downsample/src/internalClusterTest/java/org/elasticsearch/xpack/downsample/DataStreamLifecycleDownsampleIT.java
@@ -54,7 +54,7 @@ protected Settings nodeSettings(int nodeOrdinal, Settings otherSettings) {
     public void testDownsampling() throws Exception {
         String dataStreamName = "metrics-foo";
 
-        DataStreamLifecycle.Template lifecycle = DataStreamLifecycle.builder()
+        DataStreamLifecycle.Template lifecycle = DataStreamLifecycle.dataLifecycleBuilder()
             .downsampling(
                 List.of(
                     new DataStreamLifecycle.DownsamplingRound(
@@ -127,7 +127,7 @@ public void testDownsampling() throws Exception {
     public void testDownsamplingOnlyExecutesTheLastMatchingRound() throws Exception {
         String dataStreamName = "metrics-bar";
 
-        DataStreamLifecycle.Template lifecycle = DataStreamLifecycle.builder()
+        DataStreamLifecycle.Template lifecycle = DataStreamLifecycle.dataLifecycleBuilder()
             .downsampling(
                 List.of(
                     new DataStreamLifecycle.DownsamplingRound(
@@ -195,7 +195,7 @@ public void testUpdateDownsampleRound() throws Exception {
         // we expect the earlier round to be ignored
         String dataStreamName = "metrics-baz";
 
-        DataStreamLifecycle.Template lifecycle = DataStreamLifecycle.builder()
+        DataStreamLifecycle.Template lifecycle = DataStreamLifecycle.dataLifecycleBuilder()
             .downsampling(
                 List.of(
                     new DataStreamLifecycle.DownsamplingRound(
@@ -259,7 +259,7 @@ public void testUpdateDownsampleRound() throws Exception {
         // update the lifecycle so that it only has one round, for the same `after` parameter as before, but a different interval
         // the different interval should yield a different downsample index name so we expect the data stream lifecycle to get the previous
         // `10s` interval downsample index, downsample it to `30s` and replace it in the data stream instead of the `10s` one.
-        DataStreamLifecycle updatedLifecycle = DataStreamLifecycle.builder()
+        DataStreamLifecycle updatedLifecycle = DataStreamLifecycle.dataLifecycleBuilder()
             .downsampling(
                 List.of(
                     new DataStreamLifecycle.DownsamplingRound(
diff --git a/x-pack/plugin/ilm/src/internalClusterTest/java/org/elasticsearch/xpack/ilm/DataStreamAndIndexLifecycleMixingTests.java b/x-pack/plugin/ilm/src/internalClusterTest/java/org/elasticsearch/xpack/ilm/DataStreamAndIndexLifecycleMixingTests.java
index 873da8c86d4e2..c118476e0401e 100644
--- a/x-pack/plugin/ilm/src/internalClusterTest/java/org/elasticsearch/xpack/ilm/DataStreamAndIndexLifecycleMixingTests.java
+++ b/x-pack/plugin/ilm/src/internalClusterTest/java/org/elasticsearch/xpack/ilm/DataStreamAndIndexLifecycleMixingTests.java
@@ -157,7 +157,7 @@ public void testIndexTemplateSwapsILMForDataStreamLifecycle() throws Exception {
 
         // we'll rollover the data stream by indexing 2 documents (like ILM expects) and assert that the rollover happens once so the
         // data stream has 3 backing indices, two managed by ILM and one will be managed by the data stream lifecycle
-        DataStreamLifecycle.Template customLifecycle = DataStreamLifecycle.builder()
+        DataStreamLifecycle.Template customLifecycle = DataStreamLifecycle.dataLifecycleBuilder()
             .dataRetention(randomPositiveTimeValue())
             .buildTemplate();
         putComposableIndexTemplate(indexTemplateName, null, List.of(dataStreamName + "*"), Settings.EMPTY, null, customLifecycle);
@@ -485,7 +485,7 @@ public void testUpdateIndexTemplateToDataStreamLifecyclePreference() throws Exce
 
         // we'll rollover the data stream by indexing 2 documents (like ILM expects) and assert that the rollover happens once so the
         // data stream has 3 backing indices, 2 managed by ILM and 1 by the default data stream lifecycle
-        DataStreamLifecycle.Template customLifecycle = DataStreamLifecycle.builder()
+        DataStreamLifecycle.Template customLifecycle = DataStreamLifecycle.dataLifecycleBuilder()
             .dataRetention(randomPositiveTimeValue())
             .buildTemplate();
         putComposableIndexTemplate(
diff --git a/x-pack/plugin/security/src/internalClusterTest/java/org/elasticsearch/integration/DataStreamLifecycleDownsamplingSecurityIT.java b/x-pack/plugin/security/src/internalClusterTest/java/org/elasticsearch/integration/DataStreamLifecycleDownsamplingSecurityIT.java
index 2bc129cb75b5b..9def00c964a7d 100644
--- a/x-pack/plugin/security/src/internalClusterTest/java/org/elasticsearch/integration/DataStreamLifecycleDownsamplingSecurityIT.java
+++ b/x-pack/plugin/security/src/internalClusterTest/java/org/elasticsearch/integration/DataStreamLifecycleDownsamplingSecurityIT.java
@@ -120,7 +120,7 @@ protected Settings nodeSettings(int nodeOrdinal, Settings otherSettings) {
     public void testDownsamplingAuthorized() throws Exception {
         String dataStreamName = "metrics-foo";
 
-        DataStreamLifecycle.Template lifecycle = DataStreamLifecycle.builder()
+        DataStreamLifecycle.Template lifecycle = DataStreamLifecycle.dataLifecycleBuilder()
             .downsampling(
                 List.of(
                     new DataStreamLifecycle.DownsamplingRound(
@@ -410,7 +410,7 @@ private void bulkIndex(Client client, String dataStreamName, Supplier<XContentBu
 
     public static class SystemDataStreamWithDownsamplingConfigurationPlugin extends Plugin implements SystemIndexPlugin {
 
-        public static final DataStreamLifecycle.Template LIFECYCLE = DataStreamLifecycle.builder()
+        public static final DataStreamLifecycle.Template LIFECYCLE = DataStreamLifecycle.dataLifecycleBuilder()
             .downsampling(
                 List.of(
                     new DataStreamLifecycle.DownsamplingRound(
diff --git a/x-pack/plugin/security/src/internalClusterTest/java/org/elasticsearch/integration/DataStreamLifecycleServiceRuntimeSecurityIT.java b/x-pack/plugin/security/src/internalClusterTest/java/org/elasticsearch/integration/DataStreamLifecycleServiceRuntimeSecurityIT.java
index 765f1cdb2cf20..d0be6a349aa05 100644
--- a/x-pack/plugin/security/src/internalClusterTest/java/org/elasticsearch/integration/DataStreamLifecycleServiceRuntimeSecurityIT.java
+++ b/x-pack/plugin/security/src/internalClusterTest/java/org/elasticsearch/integration/DataStreamLifecycleServiceRuntimeSecurityIT.java
@@ -46,6 +46,7 @@
 import org.elasticsearch.xpack.wildcard.Wildcard;
 
 import java.io.IOException;
+import java.io.UncheckedIOException;
 import java.util.Collection;
 import java.util.Collections;
 import java.util.HashMap;
@@ -221,7 +222,7 @@ private void prepareDataStreamAndIndex(String dataStreamName, TimeValue retentio
         ExecutionException {
         var dataLifecycle = retention == null
             ? DataStreamLifecycle.Template.DATA_DEFAULT
-            : new DataStreamLifecycle.Template(true, retention, null);
+            : DataStreamLifecycle.dataLifecycleBuilder().enabled(true).dataRetention(retention).buildTemplate();
         putComposableIndexTemplate("id1", """
             {
                 "properties": {
@@ -357,7 +358,7 @@ public Collection<SystemDataStreamDescriptor> getSystemDataStreamDescriptors() {
                                               }
                                             }
                                         }"""))
-                                    .lifecycle(DataStreamLifecycle.builder().dataRetention(TimeValue.ZERO))
+                                    .lifecycle(DataStreamLifecycle.dataLifecycleBuilder().dataRetention(TimeValue.ZERO))
                                     .dataStreamOptions(new DataStreamOptions.Template(new DataStreamFailureStore.Template(true)))
                             )
                             .dataStreamTemplate(new ComposableIndexTemplate.DataStreamTemplate())
@@ -373,11 +374,8 @@ public Collection<SystemDataStreamDescriptor> getSystemDataStreamDescriptors() {
                     )
                 );
             } catch (IOException e) {
-                fail(e.getMessage());
+                throw new UncheckedIOException(e);
             }
-            throw new IllegalStateException(
-                "Something went wrong, it should have either returned the descriptor or it should have thrown an assertion error"
-            );
         }
 
         @Override