diff --git a/bin/acli b/bin/acli
index 53ce47b13..5edac2683 100755
--- a/bin/acli
+++ b/bin/acli
@@ -60,6 +60,9 @@ $input = new ArgvInput();
 if (!getenv('HOME')) {
     putenv('HOME=' . LocalMachineHelper::getHomeDir());
 }
+if (!getenv('ACLI_HOME')) {
+  putenv('ACLI_HOME=' . LocalMachineHelper::getConfigDir());
+}
 $kernel = new Kernel('prod', false);
 
 // Handle a clear-kernel-cache pseudo command. This isn't implemented as a true console
diff --git a/config/prod/services.yml b/config/prod/services.yml
index 7b3554ad1..1b238d670 100644
--- a/config/prod/services.yml
+++ b/config/prod/services.yml
@@ -1,7 +1,7 @@
 ---
 parameters:
   env(ACLI_REPO_ROOT): "%kernel.project_dir%"
-  app.data_dir: "%env(HOME)%/.acquia"
+  app.data_dir: "%env(ACLI_HOME)%"
   app.project_dir: "%env(ACLI_REPO_ROOT)%"
   app.ssh_dir: "%env(HOME)%/.ssh"
   app.acli_config_filename: '.acquia-cli.yml'
diff --git a/src/Helpers/LocalMachineHelper.php b/src/Helpers/LocalMachineHelper.php
index 61d3874c2..5ea4e074d 100644
--- a/src/Helpers/LocalMachineHelper.php
+++ b/src/Helpers/LocalMachineHelper.php
@@ -236,6 +236,18 @@ public static function getHomeDir(): string {
     return $home;
   }
 
+  public static function getConfigDir(): string {
+    $home = self::getHomeDir();
+    $legacyDir = Path::join($home, '.acquia');
+    if (file_exists($legacyDir)) {
+      return $legacyDir;
+    }
+    if ($xdgHome = getenv('XDG_CONFIG_HOME')) {
+      return Path::join($xdgHome, 'acquia');
+    }
+    return Path::join($home, '.config', 'acquia');
+  }
+
   /**
    * Get the project root directory for the working directory.
    *
diff --git a/tests/phpunit/src/Misc/LocalMachineHelperTest.php b/tests/phpunit/src/Misc/LocalMachineHelperTest.php
index 13407a942..9036737ac 100644
--- a/tests/phpunit/src/Misc/LocalMachineHelperTest.php
+++ b/tests/phpunit/src/Misc/LocalMachineHelperTest.php
@@ -96,4 +96,25 @@ public function testHomeDirWindowsMing(): void {
     LocalMachineHelper::getHomeDir();
   }
 
+  public function testConfigDirLegacy(): void {
+    self::setEnvVars(['HOME' => 'vfs://root']);
+    $configDir = LocalMachineHelper::getConfigDir();
+    $this->assertEquals('vfs://root/.acquia', $configDir);
+  }
+
+  public function testConfigDirFromXdg(): void {
+    self::setEnvVars(['XDG_CONFIG_HOME' => 'vfs://root/.config']);
+    $configDir = LocalMachineHelper::getConfigDir();
+    $this->assertEquals('vfs://root/.config/acquia', $configDir);
+  }
+
+  public function testConfigDirDefault(): void {
+    self::setEnvVars(['HOME' => 'vfs://root']);
+    self::unsetEnvVars(['XDG_CONFIG_HOME']);
+    unlink('vfs://root/.acquia/cloud_api.conf');
+    rmdir('vfs://root/.acquia');
+    $configDir = LocalMachineHelper::getConfigDir();
+    $this->assertEquals('vfs://root/.config/acquia', $configDir);
+  }
+
 }
diff --git a/tests/phpunit/src/TestBase.php b/tests/phpunit/src/TestBase.php
index 78d5de29f..0f0e36ff4 100644
--- a/tests/phpunit/src/TestBase.php
+++ b/tests/phpunit/src/TestBase.php
@@ -181,7 +181,7 @@ protected function setUp(): void {
     $this->vfsRoot = vfsStream::setup();
     $this->projectDir = vfsStream::newDirectory('project')->at($this->vfsRoot)->url();
     $this->sshDir = vfsStream::newDirectory('ssh')->at($this->vfsRoot)->url();
-    $this->dataDir = vfsStream::newDirectory('data')->at($this->vfsRoot)->url();
+    $this->dataDir = vfsStream::newDirectory('.acquia')->at($this->vfsRoot)->url();
     $this->cloudConfigFilepath = Path::join($this->dataDir, 'cloud_api.conf');
     $this->acliConfigFilename = '.acquia-cli.yml';
     $this->acliConfigFilepath = Path::join($this->projectDir, $this->acliConfigFilename);