diff --git a/templates/test/dev/cluster-template-custom-builds-load.yaml b/templates/test/dev/cluster-template-custom-builds-load.yaml
index d37d16069a2..da3b9a141fc 100644
--- a/templates/test/dev/cluster-template-custom-builds-load.yaml
+++ b/templates/test/dev/cluster-template-custom-builds-load.yaml
@@ -282,7 +282,7 @@ spec:
   template:
     spec:
       additionalTags:
-        monitoring: virtualmachine
+        monitoring: load
       identity: UserAssigned
       image:
         marketplace:
diff --git a/templates/test/dev/custom-builds-load/kustomization.yaml b/templates/test/dev/custom-builds-load/kustomization.yaml
index 1f02e3f2f20..1d9d34a53c4 100644
--- a/templates/test/dev/custom-builds-load/kustomization.yaml
+++ b/templates/test/dev/custom-builds-load/kustomization.yaml
@@ -8,6 +8,7 @@ patches:
 - path: patches/cluster-label-storageclass.yaml
 - path: patches/cluster-label-azuredisk.yaml
 - path: patches/kcp-scheduler.yaml
+- path: patches/azuremachinetemplate-monitoring.yaml
 generatorOptions:
   annotations:
     note: generated
diff --git a/templates/test/dev/custom-builds-load/patches/azuremachinetemplate-monitoring.yaml b/templates/test/dev/custom-builds-load/patches/azuremachinetemplate-monitoring.yaml
new file mode 100644
index 00000000000..e517715f746
--- /dev/null
+++ b/templates/test/dev/custom-builds-load/patches/azuremachinetemplate-monitoring.yaml
@@ -0,0 +1,11 @@
+---
+apiVersion: infrastructure.cluster.x-k8s.io/v1beta1
+kind: AzureMachineTemplate
+metadata:
+  name: ${CLUSTER_NAME}-md-0
+  namespace: default
+spec:
+  template:
+    spec:
+      additionalTags:
+        monitoring: load