diff --git a/pkg/resourcemanager/azuresql/azuresqlserver/azuresqlserver_reconcile.go b/pkg/resourcemanager/azuresql/azuresqlserver/azuresqlserver_reconcile.go
index e593d9efdd9..79c75ee4830 100644
--- a/pkg/resourcemanager/azuresql/azuresqlserver/azuresqlserver_reconcile.go
+++ b/pkg/resourcemanager/azuresql/azuresqlserver/azuresqlserver_reconcile.go
@@ -98,6 +98,10 @@ func (s *AzureSqlServerManager) Ensure(ctx context.Context, obj runtime.Object,
 		return true, nil
 	}
 
+	if instance.Status.SpecHash == "" {
+		instance.Status.SpecHash = hash
+	}
+
 	if instance.Status.Provisioning {
 
 		serv, err := s.GetServer(ctx, instance.Spec.ResourceGroup, instance.Name)