diff --git a/src/dstack/_internal/server/background/tasks/process_instances.py b/src/dstack/_internal/server/background/tasks/process_instances.py
index 4543c9ef0..814ed1eca 100644
--- a/src/dstack/_internal/server/background/tasks/process_instances.py
+++ b/src/dstack/_internal/server/background/tasks/process_instances.py
@@ -75,9 +75,6 @@
     fleet_model_to_fleet,
     get_create_instance_offers,
 )
-from dstack._internal.server.services.jobs import (
-    terminate_job_provisioning_data_instance,
-)
 from dstack._internal.server.services.locking import get_locker
 from dstack._internal.server.services.placement import (
     get_fleet_placement_groups,
@@ -160,9 +157,7 @@ async def _process_instance(session: AsyncSession, instance: InstanceModel):
         and instance.termination_policy == TerminationPolicy.DESTROY_AFTER_IDLE
         and instance.job_id is None
     ):
-        # terminates the instance and sets instance.status to TERMINATED (along other fields)
-        # if termination_idle_time is reached, noop otherwise
-        await _maybe_terminate_idle_instance(instance)
+        await _mark_terminating_if_idle_duration_expired(instance)
     if instance.status == InstanceStatus.PENDING:
         if instance.remote_connection_info is not None:
             await _add_remote(instance)
@@ -184,34 +179,20 @@ async def _process_instance(session: AsyncSession, instance: InstanceModel):
     await session.commit()
 
 
-async def _maybe_terminate_idle_instance(instance: InstanceModel):
-    current_time = get_current_datetime()
+async def _mark_terminating_if_idle_duration_expired(instance: InstanceModel):
     idle_duration = _get_instance_idle_duration(instance)
     idle_seconds = instance.termination_idle_time
     delta = datetime.timedelta(seconds=idle_seconds)
     if idle_duration > delta:
-        jpd = get_instance_provisioning_data(instance)
-        if jpd is None:
-            logger.error(
-                "Failed to terminate idle instance %s. provisioning_data is None.",
-                instance.name,
-            )
-        else:
-            await terminate_job_provisioning_data_instance(
-                project=instance.project, job_provisioning_data=jpd
-            )
-        instance.deleted = True
-        instance.deleted_at = current_time
-        instance.finished_at = current_time
-        instance.status = InstanceStatus.TERMINATED
+        instance.status = InstanceStatus.TERMINATING
         instance.termination_reason = "Idle timeout"
         logger.info(
-            "Instance %s terminated by termination policy: idle time %ss",
+            "Instance %s idle duration expired: idle time %ss. Terminating",
             instance.name,
             str(idle_duration.seconds),
             extra={
                 "instance_name": instance.name,
-                "instance_status": InstanceStatus.TERMINATED.value,
+                "instance_status": instance.status.value,
             },
         )
 
@@ -792,9 +773,12 @@ async def _terminate(instance: InstanceModel) -> None:
             )
             if backend is None:
                 logger.error(
-                    "Failed to terminate instance %s. Backend not available.", instance.name
+                    "Failed to terminate instance %s. Backend %s not available.",
+                    instance.name,
+                    jpd.backend,
                 )
             else:
+                logger.debug("Terminating runner instance %s", jpd.hostname)
                 try:
                     await run_async(
                         backend.compute().terminate_instance,
diff --git a/src/dstack/_internal/server/services/jobs/__init__.py b/src/dstack/_internal/server/services/jobs/__init__.py
index c2cf5ee80..8452a736d 100644
--- a/src/dstack/_internal/server/services/jobs/__init__.py
+++ b/src/dstack/_internal/server/services/jobs/__init__.py
@@ -126,28 +126,6 @@ def get_job_provisioning_data(job_model: JobModel) -> Optional[JobProvisioningDa
     return JobProvisioningData.__response__.parse_raw(job_model.job_provisioning_data)
 
 
-async def terminate_job_provisioning_data_instance(
-    project: ProjectModel, job_provisioning_data: JobProvisioningData
-):
-    backend = await get_project_backend_by_type(
-        project=project,
-        backend_type=job_provisioning_data.backend,
-    )
-    if backend is None:
-        logger.error(
-            "Failed to terminate the instance. "
-            f"Backend {job_provisioning_data.backend} is not configured in project {project.name}."
-        )
-        return
-    logger.debug("Terminating runner instance %s", job_provisioning_data.hostname)
-    await run_async(
-        backend.compute().terminate_instance,
-        job_provisioning_data.instance_id,
-        job_provisioning_data.region,
-        job_provisioning_data.backend_data,
-    )
-
-
 def delay_job_instance_termination(job_model: JobModel):
     job_model.remove_at = get_current_datetime() + datetime.timedelta(seconds=15)
 
diff --git a/src/tests/_internal/server/background/tasks/test_process_instances.py b/src/tests/_internal/server/background/tasks/test_process_instances.py
index e71bcec0f..16fd2319c 100644
--- a/src/tests/_internal/server/background/tasks/test_process_instances.py
+++ b/src/tests/_internal/server/background/tasks/test_process_instances.py
@@ -299,10 +299,7 @@ async def test_terminate_by_idle_timeout(self, test_db, session: AsyncSession):
         instance.termination_policy = TerminationPolicy.DESTROY_AFTER_IDLE
         instance.last_job_processed_at = get_current_datetime() + dt.timedelta(minutes=-19)
         await session.commit()
-        with patch(
-            "dstack._internal.server.background.tasks.process_instances.terminate_job_provisioning_data_instance"
-        ):
-            await process_instances()
+        await process_instances()
         await session.refresh(instance)
         assert instance is not None
         assert instance.status == InstanceStatus.TERMINATED