diff --git a/.changeset/friendly-numbers-accept.md b/.changeset/friendly-numbers-accept.md
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+++ b/.changeset/friendly-numbers-accept.md
@@ -0,0 +1,20 @@
+---
+'@backstage/config-loader': patch
+---
+
+Deprecate `$data` and replace it with `$include` which allows for any type of json value to be read from external files. In addition, `$include` can be used without a path, which causes the value at the root of the file to be loaded.
+
+Most usages of `$data` can be directly replaced with `$include`, expect for if the referenced value is not a string, in which case the value needs to be changed. For example:
+
+```yaml
+# app-config.yaml
+foo:
+  $data: foo.yaml#myValue # replacing with $include will turn the value into a number
+  $data: bar.yaml#myValue # replacing with $include is safe
+
+# foo.yaml
+myValue: 0xf00
+
+# bar.yaml
+myValue: bar
+```