diff --git a/cli/internal/terraform/terraform/aws/modules/instance_group/main.tf b/cli/internal/terraform/terraform/aws/modules/instance_group/main.tf
index 6655b1f4e5..bc491389e5 100644
--- a/cli/internal/terraform/terraform/aws/modules/instance_group/main.tf
+++ b/cli/internal/terraform/terraform/aws/modules/instance_group/main.tf
@@ -84,6 +84,11 @@ resource "aws_autoscaling_group" "autoscaling_group" {
   vpc_zone_identifier = [var.subnetwork]
   target_group_arns   = var.target_group_arns
 
+  # TODO(msanft): Remove this (to have the 10m default) once AWS SEV-SNP boot problems are resolved.
+  # Set a higher timeout for the ASG to fulfill the desired healthy capcity. Temporary workaround to
+  # long boot times on SEV-SNP machines on AWS.
+  wait_for_capacity_timeout = var.enable_snp ? "20m" : "10m"
+
   dynamic "tag" {
     for_each = var.tags
     content {