diff --git a/config/clusters/2i2c/binderhub-ui-demo.values.yaml b/config/clusters/2i2c/binderhub-ui-demo.values.yaml
index 046d976226..33bf4519dc 100644
--- a/config/clusters/2i2c/binderhub-ui-demo.values.yaml
+++ b/config/clusters/2i2c/binderhub-ui-demo.values.yaml
@@ -33,6 +33,10 @@ jupyterhub:
     singleuserAdmin:
       extraVolumeMounts: []
   singleuser:
+    nodeSelector:
+      # Schedule users on the smallest instance
+      # https://github.com/2i2c-org/infrastructure/issues/4241
+      node.kubernetes.io/instance-type: n2-highmem-4
     storage:
       type: none
       extraVolumeMounts: []
@@ -68,6 +72,11 @@ jupyterhub:
               username_claim: "email"
 binderhub-service:
   enabled: true
+  dockerApi:
+    nodeSelector:
+      # Schedule dockerApi pods to run on the smallest user nodes only
+      # https://github.com/2i2c-org/infrastructure/issues/4241
+      node.kubernetes.io/instance-type: n2-highmem-4
   ingress:
     enabled: true
     hosts:
@@ -77,6 +86,11 @@ binderhub-service:
         hosts:
           - binderhub-ui-demo.2i2c.cloud
   config:
+    KubernetesBuildExecutor:
+      nodeSelector:
+        # Schedule builder pods to run on the smallest user nodes only
+        # https://github.com/2i2c-org/infrastructure/issues/4241
+        node.kubernetes.io/instance-type: n2-highmem-4
     BinderHub:
       base_url: /
       hub_url: https://hub.binderhub-ui-demo.2i2c.cloud
diff --git a/config/clusters/hhmi/binder.values.yaml b/config/clusters/hhmi/binder.values.yaml
index ae514b81df..262f4c7083 100644
--- a/config/clusters/hhmi/binder.values.yaml
+++ b/config/clusters/hhmi/binder.values.yaml
@@ -20,6 +20,10 @@ jupyterhub:
       templateVars:
         enabled: false
   singleuser:
+    nodeSelector:
+      # Schedule users on the smallest instance
+      # https://github.com/2i2c-org/infrastructure/issues/4241
+      node.kubernetes.io/instance-type: n2-highmem-4
     cloudMetadata:
       blockWithIptables: false
     cpu:
@@ -81,6 +85,11 @@ jupyterhub:
           - access:services!service=binder
 binderhub-service:
   enabled: true
+  dockerApi:
+    nodeSelector:
+      # Schedule dockerApi pods to run on the smallest user nodes only
+      # https://github.com/2i2c-org/infrastructure/issues/4241
+      node.kubernetes.io/instance-type: n2-highmem-4
   ingress:
     enabled: true
     hosts: [binder.hhmi.2i2c.cloud]
@@ -88,6 +97,11 @@ binderhub-service:
       - hosts: [binder.hhmi.2i2c.cloud]
         secretName: binder-https-auto-tls
   config:
+    KubernetesBuildExecutor:
+      nodeSelector:
+        # Schedule builder pods to run on the smallest user nodes only
+        # https://github.com/2i2c-org/infrastructure/issues/4241
+        node.kubernetes.io/instance-type: n2-highmem-4
     BinderHub:
       base_url: /
       hub_url: https://hub.binder.hhmi.2i2c.cloud
diff --git a/config/clusters/opensci/big-binder.values.yaml b/config/clusters/opensci/big-binder.values.yaml
index e58af60fa8..77229d26da 100644
--- a/config/clusters/opensci/big-binder.values.yaml
+++ b/config/clusters/opensci/big-binder.values.yaml
@@ -48,6 +48,10 @@ jupyterhub:
     singleuserAdmin:
       extraVolumeMounts: []
   singleuser:
+    nodeSelector:
+      # Schedule users on the smallest instance
+      # https://github.com/2i2c-org/infrastructure/issues/4241
+      node.kubernetes.io/instance-type: r5.xlarge
     cloudMetadata:
       blockWithIptables: false
     cpu:
@@ -89,6 +93,11 @@ jupyterhub:
           - access:services!service=binder
 binderhub-service:
   enabled: true
+  dockerApi:
+    nodeSelector:
+      # Schedule dockerApi pods to run on the smallest user nodes only
+      # https://github.com/2i2c-org/infrastructure/issues/4241
+      node.kubernetes.io/instance-type: r5.xlarge
   ingress:
     enabled: true
     hosts: [big.binder.opensci.2i2c.cloud]
@@ -96,6 +105,11 @@ binderhub-service:
       - hosts: [big.binder.opensci.2i2c.cloud]
         secretName: binder-https-auto-tls
   config:
+    KubernetesBuildExecutor:
+      nodeSelector:
+        # Schedule builder pods to run on the smallest user nodes only
+        # https://github.com/2i2c-org/infrastructure/issues/4241
+        node.kubernetes.io/instance-type: r5.xlarge
     BinderHub:
       base_url: /
       hub_url: https://hub.big.binder.opensci.2i2c.cloud
diff --git a/config/clusters/opensci/small-binder.values.yaml b/config/clusters/opensci/small-binder.values.yaml
index 040850e347..8882804b5f 100644
--- a/config/clusters/opensci/small-binder.values.yaml
+++ b/config/clusters/opensci/small-binder.values.yaml
@@ -17,6 +17,10 @@ jupyterhub:
       templateVars:
         enabled: false
   singleuser:
+    nodeSelector:
+      # Schedule users on the smallest instance
+      # https://github.com/2i2c-org/infrastructure/issues/4241
+      node.kubernetes.io/instance-type: r5.xlarge
     cpu:
       limit: 2
     memory:
@@ -76,6 +80,11 @@ jupyterhub:
           - access:services!service=binder
 binderhub-service:
   enabled: true
+  dockerApi:
+    nodeSelector:
+      # Schedule dockerApi pods to run on the smallest user nodes only
+      # https://github.com/2i2c-org/infrastructure/issues/4241
+      node.kubernetes.io/instance-type: r5.xlarge
   ingress:
     enabled: true
     hosts: [binder.opensci.2i2c.cloud]
@@ -83,6 +92,11 @@ binderhub-service:
       - hosts: [binder.opensci.2i2c.cloud]
         secretName: binder-https-auto-tls
   config:
+    KubernetesBuildExecutor:
+      nodeSelector:
+        # Schedule builder pods to run on the smallest user nodes only
+        # https://github.com/2i2c-org/infrastructure/issues/4241
+        node.kubernetes.io/instance-type: r5.xlarge
     BinderHub:
       base_url: /
       hub_url: https://hub.binder.opensci.2i2c.cloud
diff --git a/config/clusters/projectpythia/pythia-binder.values.yaml b/config/clusters/projectpythia/pythia-binder.values.yaml
index 1f7426e057..69f533adf3 100644
--- a/config/clusters/projectpythia/pythia-binder.values.yaml
+++ b/config/clusters/projectpythia/pythia-binder.values.yaml
@@ -16,6 +16,10 @@ jupyterhub:
     singleuserAdmin:
       extraVolumeMounts: []
   singleuser:
+    nodeSelector:
+      # Schedule users on the smallest instance
+      # https://github.com/2i2c-org/infrastructure/issues/4241
+      node.kubernetes.io/instance-type: r5.xlarge
     storage:
       type: none
       extraVolumeMounts: []
@@ -74,6 +78,11 @@ jupyterhub:
           - access:services!service=binder
 binderhub-service:
   enabled: true
+  dockerApi:
+    nodeSelector:
+      # Schedule dockerApi pods to run on the smallest user nodes only
+      # https://github.com/2i2c-org/infrastructure/issues/4241
+      node.kubernetes.io/instance-type: r5.xlarge
   ingress:
     enabled: true
     hosts: [binder.pythia.2i2c.cloud]
@@ -81,6 +90,11 @@ binderhub-service:
       - hosts: [binder.pythia.2i2c.cloud]
         secretName: binder-https-auto-tls
   config:
+    KubernetesBuildExecutor:
+      nodeSelector:
+        # Schedule builder pods to run on the smallest user nodes only
+        # https://github.com/2i2c-org/infrastructure/issues/4241
+        node.kubernetes.io/instance-type: r5.xlarge
     GitHubRepoProvider:
       allowed_specs:
         - ^ProjectPythia/.*$
diff --git a/config/clusters/projectpythia/testing.values.yaml b/config/clusters/projectpythia/testing.values.yaml
deleted file mode 100644
index 3b9feaed07..0000000000
--- a/config/clusters/projectpythia/testing.values.yaml
+++ /dev/null
@@ -1,67 +0,0 @@
-jupyterhub:
-  ingress:
-    hosts: [hub.binder.pythia.2i2c.cloud]
-    tls:
-      - hosts: [hub.binder.pythia.2i2c.cloud]
-        secretName: https-auto-tls
-  custom:
-    binderhubUI:
-      enabled: true
-    2i2c:
-      add_staff_user_ids_to_admin_users: false
-    jupyterhubConfigurator:
-      enabled: false
-    singleuserAdmin:
-      extraVolumeMounts: []
-  singleuser:
-    storage:
-      type: none
-      extraVolumeMounts: []
-    initContainers: []
-    profileList: []
-  hub:
-    redirectToServer: false
-    loadRoles:
-      binder:
-        services:
-          - binder
-        scopes:
-          - servers
-          - admin:users
-      user:
-        scopes:
-          - self
-          # Admin users will by default have access:services, so this is only
-          # observed to be required for non-admin users.
-          - access:services!service=binder
-binderhub-service:
-  enabled: true
-  ingress:
-    enabled: true
-    hosts: [binder.pythia.2i2c.cloud]
-    tls:
-      - hosts: [binder.pythia.2i2c.cloud]
-        secretName: binder-https-auto-tls
-  config:
-    BinderHub:
-      base_url: /
-      hub_url: https://hub.binder.pythia.2i2c.cloud
-      badge_base_url: https://binder.pythia.2i2c.cloud
-      auth_enabled: false
-      enable_api_only_mode: false
-      banner_message: ""
-      about_message: Binder for use with Project Pythia
-  extraEnv:
-    - name: JUPYTERHUB_API_TOKEN
-      valueFrom:
-        secretKeyRef:
-          name: hub
-          key: hub.services.binder.apiToken
-    - name: JUPYTERHUB_CLIENT_ID
-      value: "service-binder"
-    - name: JUPYTERHUB_API_URL
-      value: "https://hub.binder.pythia.2i2c.cloud/hub/api"
-    # Without this, the redirect URL to /hub/api/... gets
-    # appended to binderhub's URL instead of the hub's
-    - name: JUPYTERHUB_BASE_URL
-      value: "https://hub.binder.pythia.2i2c.cloud/"
diff --git a/config/clusters/templates/common/binderhub-ui-hub.values.yaml b/config/clusters/templates/common/binderhub-ui-hub.values.yaml
index 59f0046908..23dac60e7e 100644
--- a/config/clusters/templates/common/binderhub-ui-hub.values.yaml
+++ b/config/clusters/templates/common/binderhub-ui-hub.values.yaml
@@ -35,6 +35,14 @@ jupyterhub:
     singleuserAdmin:
       extraVolumeMounts: []
   singleuser:
+    nodeSelector:
+      # Schedule users on the smallest instance
+      # https://github.com/2i2c-org/infrastructure/issues/4241
+      {% if provider == "gcp" %}
+      node.kubernetes.io/instance-type: n2-highmem-4
+      {% else %}
+      node.kubernetes.io/instance-type: r5.xlarge
+      {% endif %}
     storage:
       type: none
       extraVolumeMounts: []
@@ -119,6 +127,15 @@ jupyterhub:
           - access:services!service=binder
 binderhub-service:
   enabled: true
+  dockerApi:
+    nodeSelector:
+      # Schedule dockerApi pods to run on the smallest user nodes only
+      # https://github.com/2i2c-org/infrastructure/issues/4241
+      {% if provider == "gcp" %}
+      node.kubernetes.io/instance-type: n2-highmem-4
+      {% else %}
+      node.kubernetes.io/instance-type: r5.xlarge
+      {% endif %}
   ingress:
     enabled: true
     hosts: [{{ binderhub_domain }}]
@@ -126,6 +143,15 @@ binderhub-service:
       - hosts: [{{ binderhub_domain }}]
         secretName: binder-https-auto-tls
   config:
+    KubernetesBuildExecutor:
+      nodeSelector:
+        # Schedule builder pods to run on the smallest user nodes only
+        # https://github.com/2i2c-org/infrastructure/issues/4241
+        {% if provider == "gcp" %}
+        node.kubernetes.io/instance-type: n2-highmem-4
+        {% else %}
+        node.kubernetes.io/instance-type: r5.xlarge
+        {% endif %}
     BinderHub:
       base_url: /
       hub_url: https://{{ jupyterhub_domain }}
diff --git a/deployer/commands/generate/hub_asset/hub_files.py b/deployer/commands/generate/hub_asset/hub_files.py
index cef8fb7cb3..d2fd01e0df 100644
--- a/deployer/commands/generate/hub_asset/hub_files.py
+++ b/deployer/commands/generate/hub_asset/hub_files.py
@@ -86,6 +86,9 @@ def binderhub_ui_values_file(
     cluster_name: str = typer.Option(
         ..., prompt="Name of the cluster where the hub will live"
     ),
+    provider: str = typer.Option(
+        ..., prompt="Name of the provider where the hub will live (gcp/aws)"
+    ),
     jupyterhub_domain: str = typer.Option(
         ...,
         prompt="Domain where jupyterhub will run (ex. hub.binder.community.2i2c.cloud)",
@@ -127,6 +130,7 @@ def binderhub_ui_values_file(
 
     vars = {
         "cluster_name": cluster_name,
+        "provider": provider,
         "jupyterhub_domain": jupyterhub_domain,
         "binderhub_domain": binderhub_domain,
         "authenticator": authenticator,
diff --git a/docs/howto/features/binderhub-ui.md b/docs/howto/features/binderhub-ui.md
index 471a63d64e..283ffef54c 100644
--- a/docs/howto/features/binderhub-ui.md
+++ b/docs/howto/features/binderhub-ui.md
@@ -68,7 +68,7 @@ Some of the configuration that gets inherited either from the `basehub` defaults
         initContainers: []
         profileList: []
     ```
-#### 2. Check jupyterhub and binderhub domains setup
+#### 1. Check jupyterhub and binderhub domains setup
 
 Having separate domains for both jupyterhub and binderhub will help with having clean and correct sharing URLs without having them be based off the `hub/services/:name` path.
 
@@ -94,7 +94,7 @@ binderhub-service:
         secretName: binder-https-auto-tls
 ```
 
-#### 3. Check that binderhubUI is enabled
+#### 1. Check that binderhubUI is enabled
 
 Enable `jupyterhub.custom.binderhubUI` which will in turn enable the hub to use [BinderSpawnerMixin](https://github.com/jupyterhub/binderhub/blob/bd297b2c3f713cf46b0b22cfabc86d8140bbed41/helm-chart/binderhub/values.yaml#L115-L207) that allows converting JupyterHub container spawners into BinderHub spawners
 
@@ -105,7 +105,7 @@ jupyterhub:
       enabled: true
 ```
 
-#### 4. Check that the binderhub-service chart is enabled
+#### 1. Check that the binderhub-service chart is enabled
 
 We will use the [binderhub-service](https://github.com/2i2c-org/binderhub-service/) Helm chart to run BinderHub, the Python software, as a standalone service to build and push images with [repo2docker](https://github.com/jupyterhub/repo2docker), next to JupyterHub so we need to enable it.
 
@@ -114,7 +114,7 @@ binderhub-service:
   enabled: true
 ```
 
-#### 5. Check that BinderHub is configured correctly
+#### 1. Check that BinderHub is configured correctly
 
 We need to configure BinderHub so that:
 
@@ -131,7 +131,33 @@ binderhub-service:
       enable_api_only_mode: false
 ```
 
-#### 6. Check the binderhub extra env variables
+#### 1. Check that the builder docker api and user pods are scheduled on the smallest available instance
+
+In general, for GCP, they should run on `n2-highmem-4` and on AWS they should be placed on `r5.xlarge` machines. But it's best to double-check the cluster's terraform or eksctl configuration files to make sure this is the smallest instance and not another one.
+
+
+```yaml
+binderhub-service:
+  dockerApi:
+    nodeSelector:
+      # Schedule dockerApi pods to run on the smallest user nodes only
+      # https://github.com/2i2c-org/infrastructure/issues/4241
+      node.kubernetes.io/instance-type: n2-highmem-4
+  config:
+    KubernetesBuildExecutor:
+      nodeSelector:
+        # Schedule builder pods to run on the smallest user nodes only
+        # https://github.com/2i2c-org/infrastructure/issues/4241
+        node.kubernetes.io/instance-type: n2-highmem-4
+jupyterhub:
+  singleuser:
+    nodeSelector:
+      # Schedule users on the smallest instance
+      # https://github.com/2i2c-org/infrastructure/issues/4241
+      node.kubernetes.io/instance-type: n2-highmem-4
+```
+
+#### 1. Check the binderhub extra env variables
 
 These are needed by the jupyterhub software bits that the binderhub software uses.