diff --git a/images/capi/Makefile b/images/capi/Makefile
index 5a64b7980a..7eab90626a 100644
--- a/images/capi/Makefile
+++ b/images/capi/Makefile
@@ -643,6 +643,7 @@ build-azure-sig-azurelinux-3: ## Builds Azure Linux 3 Azure managed image in Sha
 build-azure-sig-rhel-8: ## Builds RHEL 8 Azure managed image in Shared Image Gallery
 build-azure-sig-windows-2019-containerd: ## Builds Windows Server 2019 with containerd Azure managed image in Shared Image Gallery
 build-azure-sig-windows-2022-containerd: ## Builds Windows Server 2022 with containerd Azure managed image in Shared Image Gallery
+build-azure-sig-windows-2025-containerd: ## Builds Windows Server 2025 with containerd Azure managed image in Shared Image Gallery
 build-azure-sig-windows-2019-containerd-cvm: ## Builds Windows Server 2019 with containerd CVM Azure managed image in Shared Image Gallery
 build-azure-sig-windows-2022-containerd-cvm: ## Builds Windows Server 2022 with containerd CVM Azure managed image in Shared Image Gallery
 build-azure-vhd-ubuntu-2004: ## Builds Ubuntu 20.04 VHD image for Azure
@@ -871,6 +872,7 @@ validate-azure-sig-ubuntu-2204: ## Validates Ubuntu 22.04 Azure managed image in
 validate-azure-sig-ubuntu-2404: ## Validates Ubuntu 24.04 Azure managed image in Shared Image Gallery Packer config
 validate-azure-sig-windows-2019-containerd: ## Validate Windows Server 2019 with containerd Azure managed image in Shared Image Gallery Packer config
 validate-azure-sig-windows-2022-containerd: ## Validate Windows Server 2022 with containerd Azure managed image in Shared Image Gallery Packer config
+validate-azure-sig-windows-2025-containerd: ## Validate Windows Server 2025 with containerd Azure managed image in Shared Image Gallery Packer config
 validate-azure-sig-windows-annual-containerd: ## Validate Windows Server Annual Channel with containerd Azure managed image in Shared Image Gallery Packer config
 validate-azure-vhd-centos-7: ## Validates CentOS 7 VHD image Azure Packer config
 validate-azure-vhd-mariner-2: ## Validates Azure Linux 2 VHD image Azure Packer config
diff --git a/images/capi/azure_targets.sh b/images/capi/azure_targets.sh
index 952fc26c7f..2a4dd58252 100644
--- a/images/capi/azure_targets.sh
+++ b/images/capi/azure_targets.sh
@@ -1,7 +1,7 @@
 VHD_TARGETS="ubuntu-2004 ubuntu-2204 ubuntu-2404 centos-7 mariner-2 azurelinux-3 rhel-8 windows-2019-containerd windows-2022-containerd"
 VHD_CI_TARGETS="ubuntu-2204 ubuntu-2404 mariner-2 windows-2019-containerd windows-2022-containerd"
-SIG_TARGETS="ubuntu-2004 ubuntu-2204 ubuntu-2404 centos-7 mariner-2 azurelinux-3 rhel-8 windows-2019-containerd windows-2022-containerd flatcar"
-SIG_CI_TARGETS="ubuntu-2204 ubuntu-2404 mariner-2 windows-2019-containerd windows-2022-containerd flatcar"
+SIG_TARGETS="ubuntu-2004 ubuntu-2204 ubuntu-2404 centos-7 mariner-2 azurelinux-3 rhel-8 windows-2019-containerd windows-2022-containerd windows-2025-containerd flatcar"
+SIG_CI_TARGETS="ubuntu-2204 ubuntu-2404 mariner-2 windows-2019-containerd windows-2022-containerd windows-2025-containerd flatcar"
 SIG_GEN2_TARGETS="ubuntu-2004 ubuntu-2204 ubuntu-2404 centos-7 mariner-2 azurelinux-3 flatcar"
 SIG_GEN2_CI_TARGETS="ubuntu-2204 ubuntu-2404 mariner-2 flatcar"
 SIG_CVM_TARGETS="ubuntu-2004 ubuntu-2204 ubuntu-2404 windows-2019-containerd windows-2022-containerd"
diff --git a/images/capi/packer/azure/packer-windows.json b/images/capi/packer/azure/packer-windows.json
index f2752409c8..d9e7762c44 100644
--- a/images/capi/packer/azure/packer-windows.json
+++ b/images/capi/packer/azure/packer-windows.json
@@ -60,6 +60,11 @@
       "name": "sig-{{user `build_name`}}",
       "os_disk_size_gb": "{{user `os_disk_size_gb`}}",
       "os_type": "Windows",
+      "plan_info": {
+        "plan_name": "{{user `plan_image_sku`}}",
+        "plan_product": "{{user `plan_image_offer`}}",
+        "plan_publisher": "{{user `plan_image_publisher`}}"
+      },
       "private_virtual_network_with_public_ip": "{{user `private_virtual_network_with_public_ip`}}",
       "shared_gallery_image_version_exclude_from_latest": "{{ user `exclude_from_latest` }}",
       "shared_image_gallery": {
diff --git a/images/capi/packer/azure/scripts/init-sig.sh b/images/capi/packer/azure/scripts/init-sig.sh
index 447c11337c..1b3689e586 100755
--- a/images/capi/packer/azure/scripts/init-sig.sh
+++ b/images/capi/packer/azure/scripts/init-sig.sh
@@ -13,7 +13,15 @@ az account set -s ${AZURE_SUBSCRIPTION_ID} >/dev/null 2>&1
 eval "$tracestate"
 
 export RESOURCE_GROUP_NAME="${RESOURCE_GROUP_NAME:-cluster-api-images}"
-export AZURE_LOCATION="${AZURE_LOCATION:-northcentralus}"
+export AZURE_LOCATION="${AZURE_LOCATION:-southcentralus}"
+
+# TODO: [AUGUST 2024] Remove purchase plan info when the image is GA
+# Creating Azure VMs from a Marketplace Image requires a Purchase Plan
+# https://learn.microsoft.com/en-us/azure/virtual-machines/marketplace-images
+export PLAN_PUBLISHER="${PLAN_PUBLISHER:-''}"
+export PLAN_OFFER="${PLAN_OFFER:-''}"
+export PLAN_NAME="${PLAN_NAME:-''}"
+
 if ! az group show -n ${RESOURCE_GROUP_NAME} -o none 2>/dev/null; then
   az group create -n ${RESOURCE_GROUP_NAME} -l ${AZURE_LOCATION} --tags ${TAGS:-}
 fi
@@ -50,7 +58,10 @@ create_image_definition() {
     --sku ${SIG_SKU:-$2} \
     --hyper-v-generation ${3} \
     --os-type ${4} \
-    --features ${5:-''}
+    --features ${5:-''} \
+    --plan-name ${PLAN_NAME} \
+    --plan-product ${PLAN_OFFER} \
+    --plan-publisher ${PLAN_PUBLISHER}
 }
 
 SIG_TARGET=$1
@@ -83,6 +94,9 @@ case ${SIG_TARGET} in
   windows-2022-containerd)
     create_image_definition ${SIG_TARGET} "win-2022-containerd" "V1" "Windows"
   ;;
+  windows-2025-containerd)
+    create_image_definition ${SIG_TARGET} "win-2025-containerd" "V2" "Windows"
+  ;;
   windows-annual-containerd)
     create_image_definition ${SIG_TARGET} "win-annual-containerd" "V1" "Windows"
   ;;
diff --git a/images/capi/packer/azure/windows-2025-containerd.json b/images/capi/packer/azure/windows-2025-containerd.json
new file mode 100644
index 0000000000..b495068576
--- /dev/null
+++ b/images/capi/packer/azure/windows-2025-containerd.json
@@ -0,0 +1,18 @@
+{
+  "additional_registry_images": "false",
+  "additional_registry_images_list": "",
+  "build_name": "windows-2025-containerd",
+  "distribution": "windows",
+  "distribution_version": "2025",
+  "image_offer": "microsoftserveroperatingsystems-previews",
+  "image_publisher": "MicrosoftWindowsServer",
+  "image_sku": "windows-server-2025-azure-edition-hotpatch",
+  "image_version": "latest",
+  "load_additional_components": "false",
+  "runtime": "containerd",
+  "vm_size": "Standard_D4s_v3",
+  "windows_updates_kbs": "",
+  "plan_image_sku": "windows-server-2025-azure-edition-hotpatch",
+  "plan_image_offer": "microsoftserveroperatingsystems-previews",
+  "plan_image_publisher": "microsoftwindowsserver"
+}