diff --git a/github/azure-self-hosted-runners/templates/azure-config.toml b/github/azure-self-hosted-runners/templates/azure-config.toml
index 43e6f91..ebc3239 100644
--- a/github/azure-self-hosted-runners/templates/azure-config.toml
+++ b/github/azure-self-hosted-runners/templates/azure-config.toml
@@ -1,4 +1,4 @@
-location = "{{ env['LOCATION'] }}"
+location = "{{ env['VM_LOCATION'] }}"
 
 [credentials]
 subscription_id = "{{ env['SUBSCRIPTION_ID'] }}"
diff --git a/github/azure-self-hosted-runners/tf/main.tf b/github/azure-self-hosted-runners/tf/main.tf
index 447c5c1..b2eb437 100644
--- a/github/azure-self-hosted-runners/tf/main.tf
+++ b/github/azure-self-hosted-runners/tf/main.tf
@@ -87,7 +87,7 @@ resource "azurerm_container_group" "garm_aci" {
       GARM_HOSTNAME   = local.fqdn
       SUBSCRIPTION_ID = data.azurerm_subscription.current.subscription_id
       AZURE_CLIENT_ID = azurerm_user_assigned_identity.garm_id.client_id
-	  LOCATION        = var.location
+      VM_LOCATION     = var.vm_location
     }
 
     secure_environment_variables = {
diff --git a/github/azure-self-hosted-runners/tf/variables.tf b/github/azure-self-hosted-runners/tf/variables.tf
index 4a6f43b..9b94fda 100644
--- a/github/azure-self-hosted-runners/tf/variables.tf
+++ b/github/azure-self-hosted-runners/tf/variables.tf
@@ -10,6 +10,12 @@ variable "location" {
   description = "Location for all resources"
 }
 
+variable "vm_location" {
+  type        = string
+  default     = "westeurope"
+  description = "Location for the runner VMs"
+}
+
 variable "garm_image" {
   type        = string
   default     = "ghcr.io/confidential-containers/garm:main"