diff --git a/docker/services/opendaylight-api.yaml b/docker/services/opendaylight-api.yaml
index d053a4851f..9f6c10fb35 100644
--- a/docker/services/opendaylight-api.yaml
+++ b/docker/services/opendaylight-api.yaml
@@ -138,6 +138,7 @@ outputs:
                   - /var/lib/config-data/puppet-generated/opendaylight/:/var/lib/kolla/config_files/src:ro
                   - /var/lib/opendaylight/journal:/opt/opendaylight/journal
                   - /var/lib/opendaylight/snapshots:/opt/opendaylight/snapshots
+                  - /var/lib/opendaylight/data:/opt/opendaylight/data
             environment:
               - KOLLA_CONFIG_STRATEGY=COPY_ALWAYS
       metadata_settings:
@@ -150,6 +151,7 @@ outputs:
           with_items:
             - /var/lib/opendaylight/snapshots
             - /var/lib/opendaylight/journal
+            - /var/lib/opendaylight/data
         - name: opendaylight logs readme
           copy:
             dest: /var/log/opendaylight/readme.txt
@@ -176,24 +178,25 @@ outputs:
         # Containerized deployment upgrade steps
         - name: ODL container L2 update and upgrade tasks
           block: &odl_container_upgrade_tasks
-            - name: remove journal and snapshots
+            - name: remove data, journal and snapshots
               when: step|int == 0
               file:
                 path: /var/lib/opendaylight/{{item}}
                 state: absent
-                with_items:
+              with_items:
                 - snapshots
                 - journal
+                - data
             - name: Set ODL upgrade flag to True
               copy:
-                dest: /var/lib/config-data/puppet-generated/opendaylight/etc/opendaylight/datastore/initial/config/genius-mdsalutil-config.xml
+                dest: /var/lib/config-data/puppet-generated/opendaylight/opt/opendaylight/etc/opendaylight/datastore/initial/config/genius-mdsalutil-config.xml
                 content: |
                   <config xmlns="urn:opendaylight:params:xml:ns:yang:mdsalutil">
                       <upgradeInProgress>true</upgradeInProgress>
                   </config>
-              owner: odl
-              group: odl
-              mode: 0644
+                owner: 42462
+                group: 42462
+                mode: 0644
               when: step|int == 1
       post_upgrade_tasks: &odl_container_post_upgrade_tasks
         - name: Disable Upgrade Flag via Rest
@@ -210,13 +213,13 @@ outputs:
           when: step|int == 0
         - name: Disable Upgrade in Config File
           copy:
-            dest: /var/lib/config-data/puppet-generated/opendaylight/etc/opendaylight/datastore/initial/config/genius-mdsalutil-config.xml
+            dest: /var/lib/config-data/puppet-generated/opendaylight/opt/opendaylight/etc/opendaylight/datastore/initial/config/genius-mdsalutil-config.xml
             content: |
               <config xmlns="urn:opendaylight:params:xml:ns:yang:mdsalutil">
                   <upgradeInProgress>false</upgradeInProgress>
               </config>
-            owner: odl
-            group: odl
+            owner: 42462
+            group: 42462
             mode: 0644
           when: step|int == 0
       update_tasks:
diff --git a/releasenotes/notes/odl_delete_data_folder-b8c2f9a9382fd692.yaml b/releasenotes/notes/odl_delete_data_folder-b8c2f9a9382fd692.yaml
new file mode 100644
index 0000000000..cf05634111
--- /dev/null
+++ b/releasenotes/notes/odl_delete_data_folder-b8c2f9a9382fd692.yaml
@@ -0,0 +1,3 @@
+---
+fixes:
+  - Delete ODL data folder while updating/upgrading ODL.