diff --git a/pkg/actuators/machine/instances.go b/pkg/actuators/machine/instances.go
index fe55a58eee..c5ecabf623 100644
--- a/pkg/actuators/machine/instances.go
+++ b/pkg/actuators/machine/instances.go
@@ -342,7 +342,7 @@ func launchInstance(machine *machinev1.Machine, machineProviderConfig *awsprovid
 		}
 	}
 
-	instanceTenancy := machineProviderConfig.Tenancy
+	instanceTenancy := machineProviderConfig.Placement.Tenancy
 
 	switch instanceTenancy {
 	case "":
@@ -351,7 +351,7 @@ func launchInstance(machine *machinev1.Machine, machineProviderConfig *awsprovid
 		if placement == nil {
 			placement = &ec2.Placement{}
 		}
-		tenancy := string(machineProviderConfig.Tenancy)
+		tenancy := string(instanceTenancy)
 		placement.Tenancy = &tenancy
 	default:
 		return nil, mapierrors.CreateMachine("invalid instance tenancy: %s. Allowed options are: %s,%s,%s",
diff --git a/pkg/actuators/machine/stubs.go b/pkg/actuators/machine/stubs.go
index fad8ac8878..927f8eb851 100644
--- a/pkg/actuators/machine/stubs.go
+++ b/pkg/actuators/machine/stubs.go
@@ -218,13 +218,13 @@ func stubPCAMI(ami awsproviderv1.AWSResourceReference) *awsproviderv1.AWSMachine
 
 func stubDedicatedInstanceTenancy() *awsproviderv1.AWSMachineProviderConfig {
 	pc := stubProviderConfig()
-	pc.Tenancy = awsproviderv1.DedicatedTenancy
+	pc.Placement.Tenancy = awsproviderv1.DedicatedTenancy
 	return pc
 }
 
 func stubInvalidInstanceTenancy() *awsproviderv1.AWSMachineProviderConfig {
 	pc := stubProviderConfig()
-	pc.Tenancy = "invalid"
+	pc.Placement.Tenancy = "invalid"
 	return pc
 }
 
diff --git a/pkg/apis/awsprovider/v1beta1/awsproviderconfig_types.go b/pkg/apis/awsprovider/v1beta1/awsproviderconfig_types.go
index 33c73845e0..6e377f6116 100644
--- a/pkg/apis/awsprovider/v1beta1/awsproviderconfig_types.go
+++ b/pkg/apis/awsprovider/v1beta1/awsproviderconfig_types.go
@@ -88,10 +88,6 @@ type AWSMachineProviderConfig struct {
 
 	// SpotMarketOptions allows users to configure instances to be run using AWS Spot instances.
 	SpotMarketOptions *SpotMarketOptions `json:"spotMarketOptions,omitempty"`
-
-	// Tenancy indicates if instance should run on shared or single-tenant hardware. There are
-	// supported 3 options: default, dedicated and host.
-	Tenancy InstanceTenancy `json:"tenancy,omitempty"`
 }
 
 // BlockDeviceMappingSpec describes a block device mapping
@@ -200,6 +196,10 @@ type Placement struct {
 
 	// AvailabilityZone is the availability zone of the instance
 	AvailabilityZone string `json:"availabilityZone,omitempty"`
+
+	// Tenancy indicates if instance should run on shared or single-tenant hardware. There are
+	// supported 3 options: default, dedicated and host.
+	Tenancy InstanceTenancy `json:"tenancy,omitempty"`
 }
 
 // Filter is a filter used to identify an AWS resource