diff --git a/pkg/operator/deploy/deploy.go b/pkg/operator/deploy/deploy.go
index 082327e0fbe..18363bc45ab 100644
--- a/pkg/operator/deploy/deploy.go
+++ b/pkg/operator/deploy/deploy.go
@@ -212,6 +212,13 @@ func (o *operator) resources() ([]kruntime.Object, error) {
 		serviceSubnets = append(serviceSubnets, "/subscriptions/"+o.env.SubscriptionID()+"/resourceGroups/"+o.env.GatewayResourceGroup()+"/providers/Microsoft.Network/virtualNetworks/gateway-vnet/subnets/gateway-subnet")
 	}
 
+	// this service subnet is added during install time if cluster is installed via Hive
+	if o.oc.Properties.HiveProfile.CreatedByHive {
+		// TODO: add AKS shard support
+		hiveShard := 1
+		serviceSubnets = append(serviceSubnets, fmt.Sprintf("/subscriptions/%s/resourceGroups/%s/providers/Microsoft.Network/virtualNetworks/aks-net/subnets/PodSubnet-%03d", o.env.SubscriptionID(), o.env.ResourceGroup(), hiveShard))
+	}
+
 	cluster := &arov1alpha1.Cluster{
 		ObjectMeta: metav1.ObjectMeta{
 			Name: arov1alpha1.SingletonClusterName,