diff --git a/docs/docs/concepts/backends.md b/docs/docs/concepts/backends.md
index 78fb7613e..f549ef803 100644
--- a/docs/docs/concepts/backends.md
+++ b/docs/docs/concepts/backends.md
@@ -325,6 +325,9 @@ There are two ways to configure Azure: using a client secret or using the defaul
     }
     ```
 
+    The `"Microsoft.Resources/subscriptions/resourceGroups/write"` permission is not required
+    if [`resource_group`](/docs/reference/server/config.yml/#azure) is specified.
+
 ??? info "VPC"
     By default, `dstack` creates new Azure networks and subnets for every configured region.
     It's possible to use custom networks by specifying `vpc_ids`:
diff --git a/src/dstack/_internal/core/models/backends/azure.py b/src/dstack/_internal/core/models/backends/azure.py
index 21b5b41a0..e386120fd 100644
--- a/src/dstack/_internal/core/models/backends/azure.py
+++ b/src/dstack/_internal/core/models/backends/azure.py
@@ -11,6 +11,7 @@ class AzureConfigInfo(CoreModel):
     type: Literal["azure"] = "azure"
     tenant_id: str
     subscription_id: str
+    resource_group: Optional[str] = None
     locations: Optional[List[str]] = None
     vpc_ids: Optional[Dict[str, str]] = None
     public_ips: Optional[bool] = None
@@ -48,6 +49,7 @@ class AzureConfigInfoWithCredsPartial(CoreModel):
     creds: Optional[AnyAzureCreds]
     tenant_id: Optional[str]
     subscription_id: Optional[str]
+    resource_group: Optional[str]
     locations: Optional[List[str]]
     vpc_ids: Optional[Dict[str, str]]
     public_ips: Optional[bool]
@@ -63,4 +65,4 @@ class AzureConfigValues(CoreModel):
 
 
 class AzureStoredConfig(AzureConfigInfo):
-    resource_group: str
+    resource_group: str = ""
diff --git a/src/dstack/_internal/server/services/backends/configurators/azure.py b/src/dstack/_internal/server/services/backends/configurators/azure.py
index 363d331c8..188a5cabb 100644
--- a/src/dstack/_internal/server/services/backends/configurators/azure.py
+++ b/src/dstack/_internal/server/services/backends/configurators/azure.py
@@ -2,6 +2,7 @@
 from concurrent.futures import ThreadPoolExecutor, as_completed
 from typing import List, Optional, Tuple
 
+import azure.core.exceptions
 from azure.core.credentials import TokenCredential
 from azure.mgmt import network as network_mgmt
 from azure.mgmt import resource as resource_mgmt
@@ -154,16 +155,17 @@ def create_backend(
         if is_core_model_instance(config.creds, AzureClientCreds):
             self._set_client_creds_tenant_id(config.creds, config.tenant_id)
         credential, _ = auth.authenticate(config.creds)
-        resource_group = self._create_resource_group(
-            credential=credential,
-            subscription_id=config.subscription_id,
-            location=MAIN_LOCATION,
-            project_name=project.name,
-        )
+        if config.resource_group is None:
+            config.resource_group = self._create_resource_group(
+                credential=credential,
+                subscription_id=config.subscription_id,
+                location=MAIN_LOCATION,
+                project_name=project.name,
+            )
         self._create_network_resources(
             credential=credential,
             subscription_id=config.subscription_id,
-            resource_group=resource_group,
+            resource_group=config.resource_group,
             locations=config.locations,
             create_default_network=config.vpc_ids is None,
         )
@@ -172,7 +174,6 @@ def create_backend(
             type=self.TYPE.value,
             config=AzureStoredConfig(
                 **AzureConfigInfo.__response__.parse_obj(config).dict(),
-                resource_group=resource_group,
             ).json(),
             auth=DecryptedString(plaintext=AzureCreds.parse_obj(config.creds).__root__.json()),
         )
@@ -322,6 +323,7 @@ def _check_config(
         self, config: AzureConfigInfoWithCredsPartial, credential: auth.AzureCredential
     ):
         self._check_tags_config(config)
+        self._check_resource_group(config=config, credential=credential)
         self._check_vpc_config(config=config, credential=credential)
 
     def _check_tags_config(self, config: AzureConfigInfoWithCredsPartial):
@@ -336,6 +338,18 @@ def _check_tags_config(self, config: AzureConfigInfoWithCredsPartial):
         except BackendError as e:
             raise ServerClientError(e.args[0])
 
+    def _check_resource_group(
+        self, config: AzureConfigInfoWithCredsPartial, credential: auth.AzureCredential
+    ):
+        if config.resource_group is None:
+            return
+        resource_manager = ResourceManager(
+            credential=credential,
+            subscription_id=config.subscription_id,
+        )
+        if not resource_manager.resource_group_exists(config.resource_group):
+            raise ServerClientError(f"Resource group {config.resource_group} not found")
+
     def _check_vpc_config(
         self, config: AzureConfigInfoWithCredsPartial, credential: auth.AzureCredential
     ):
@@ -406,6 +420,18 @@ def create_resource_group(
         )
         return resource_group.name
 
+    def resource_group_exists(
+        self,
+        name: str,
+    ) -> bool:
+        try:
+            self.resource_client.resource_groups.get(
+                resource_group_name=name,
+            )
+        except azure.core.exceptions.ResourceNotFoundError:
+            return False
+        return True
+
 
 class NetworkManager:
     def __init__(self, credential: TokenCredential, subscription_id: str):
diff --git a/src/dstack/_internal/server/services/config.py b/src/dstack/_internal/server/services/config.py
index bfd35df95..e2d6dad38 100644
--- a/src/dstack/_internal/server/services/config.py
+++ b/src/dstack/_internal/server/services/config.py
@@ -124,6 +124,15 @@ class AzureConfig(CoreModel):
     type: Annotated[Literal["azure"], Field(description="The type of the backend")] = "azure"
     tenant_id: Annotated[str, Field(description="The tenant ID")]
     subscription_id: Annotated[str, Field(description="The subscription ID")]
+    resource_group: Annotated[
+        Optional[str],
+        Field(
+            description=(
+                "The resource group for resources created by `dstack`."
+                " If not specified, `dstack` will create a new resource group"
+            )
+        ),
+    ] = None
     regions: Annotated[
         Optional[List[str]],
         Field(description="The list of Azure regions (locations). Omit to use all regions"),