diff --git a/docs/data-sources/cloud_provider_azure_credential.md b/docs/data-sources/cloud_provider_azure_credential.md
index 31957a481..4fc9f88ac 100644
--- a/docs/data-sources/cloud_provider_azure_credential.md
+++ b/docs/data-sources/cloud_provider_azure_credential.md
@@ -34,16 +34,6 @@ resource "grafana_cloud_provider_azure_credential" "test" {
 data "grafana_cloud_provider_azure_credential" "test" {
   stack_id    = grafana_cloud_provider_azure_credential.test.stack_id
   resource_id = grafana_cloud_provider_azure_credential.test.resource_id
-
-  resource_discovery_tag_filter {
-    key   = grafana_cloud_provider_azure_credential.test.resource_discovery_tag_filter[0].key
-    value = grafana_cloud_provider_azure_credential.test.resource_discovery_tag_filter[0].value
-  }
-
-  resource_discovery_tag_filter {
-    key   = grafana_cloud_provider_azure_credential.test.resource_discovery_tag_filter[1].key
-    value = grafana_cloud_provider_azure_credential.test.resource_discovery_tag_filter[1].value
-  }
 }
 ```
 
@@ -55,22 +45,19 @@ data "grafana_cloud_provider_azure_credential" "test" {
 - `resource_id` (String) The ID given by the Grafana Cloud Provider API to this Azure Credential resource.
 - `stack_id` (String) The StackID of the Grafana Cloud instance. Part of the Terraform Resource ID.
 
-### Optional
-
-- `resource_discovery_tag_filter` (Block List) The list of tag filters to apply to resources. (see [below for nested schema](#nestedblock--resource_discovery_tag_filter))
-
 ### Read-Only
 
 - `client_id` (String) The client ID of the Azure Credential.
 - `client_secret` (String, Sensitive) The client secret of the Azure Credential.
 - `id` (String) The Terraform Resource ID. This has the format "{{ stack_id }}:{{ resource_id }}".
 - `name` (String) The name of the Azure Credential.
+- `resource_discovery_tag_filter` (Block List) The list of tag filters to apply to resources. (see [below for nested schema](#nestedblock--resource_discovery_tag_filter))
 - `tenant_id` (String) The tenant ID of the Azure Credential.
 
 <a id="nestedblock--resource_discovery_tag_filter"></a>
 ### Nested Schema for `resource_discovery_tag_filter`
 
-Required:
+Read-Only:
 
 - `key` (String) The key of the tag filter.
 - `value` (String) The value of the tag filter.
diff --git a/examples/data-sources/grafana_cloud_provider_azure_credential/data-source.tf b/examples/data-sources/grafana_cloud_provider_azure_credential/data-source.tf
index ca38f0a7d..6bbaabb7f 100644
--- a/examples/data-sources/grafana_cloud_provider_azure_credential/data-source.tf
+++ b/examples/data-sources/grafana_cloud_provider_azure_credential/data-source.tf
@@ -19,14 +19,4 @@ resource "grafana_cloud_provider_azure_credential" "test" {
 data "grafana_cloud_provider_azure_credential" "test" {
   stack_id    = grafana_cloud_provider_azure_credential.test.stack_id
   resource_id = grafana_cloud_provider_azure_credential.test.resource_id
-
-  resource_discovery_tag_filter {
-    key   = grafana_cloud_provider_azure_credential.test.resource_discovery_tag_filter[0].key
-    value = grafana_cloud_provider_azure_credential.test.resource_discovery_tag_filter[0].value
-  }
-
-  resource_discovery_tag_filter {
-    key   = grafana_cloud_provider_azure_credential.test.resource_discovery_tag_filter[1].key
-    value = grafana_cloud_provider_azure_credential.test.resource_discovery_tag_filter[1].value
-  }
 }
\ No newline at end of file
diff --git a/internal/resources/cloudprovider/data_source_azure_credential.go b/internal/resources/cloudprovider/data_source_azure_credential.go
index c8c3ac16a..97fd6d170 100644
--- a/internal/resources/cloudprovider/data_source_azure_credential.go
+++ b/internal/resources/cloudprovider/data_source_azure_credential.go
@@ -3,6 +3,8 @@ package cloudprovider
 import (
 	"context"
 
+	"github.com/hashicorp/terraform-plugin-framework/diag"
+
 	"github.com/grafana/terraform-provider-grafana/v3/internal/common"
 	"github.com/grafana/terraform-provider-grafana/v3/internal/common/cloudproviderapi"
 	"github.com/hashicorp/terraform-plugin-framework/datasource"
@@ -81,11 +83,11 @@ func (r *datasourceAzureCredential) Schema(ctx context.Context, req datasource.S
 					Attributes: map[string]schema.Attribute{
 						"key": schema.StringAttribute{
 							Description: "The key of the tag filter.",
-							Required:    true,
+							Computed:    true,
 						},
 						"value": schema.StringAttribute{
 							Description: "The value of the tag filter.",
-							Required:    true,
+							Computed:    true,
 						},
 					},
 				},
@@ -141,4 +143,35 @@ func (r *datasourceAzureCredential) Read(ctx context.Context, req datasource.Rea
 	if resp.Diagnostics.HasError() {
 		return
 	}
+
+	convertedTagFilters, diags := r.convertTagFilters(ctx, credential.ResourceTagFilters)
+	resp.Diagnostics.Append(diags...)
+	if resp.Diagnostics.HasError() {
+		return
+	}
+	diags = resp.State.SetAttribute(ctx, path.Root("resource_discovery_tag_filter"), convertedTagFilters)
+	resp.Diagnostics.Append(diags...)
+	if resp.Diagnostics.HasError() {
+		return
+	}
+}
+
+func (r *datasourceAzureCredential) convertTagFilters(ctx context.Context, apiTagFilters []cloudproviderapi.TagFilter) (types.List, diag.Diagnostics) {
+	tagFiltersTF := make([]TagFilter, len(apiTagFilters))
+	conversionDiags := diag.Diagnostics{}
+	tagFilterListObjType := types.ObjectType{AttrTypes: TagFilter{}.attrTypes()}
+
+	for i, apiTagFilter := range apiTagFilters {
+		tagFiltersTF[i] = TagFilter{
+			Key:   types.StringValue(apiTagFilter.Key),
+			Value: types.StringValue(apiTagFilter.Value),
+		}
+	}
+
+	tagFiltersTFList, diags := types.ListValueFrom(ctx, tagFilterListObjType, tagFiltersTF)
+	conversionDiags.Append(diags...)
+	if conversionDiags.HasError() {
+		return types.ListNull(tagFilterListObjType), conversionDiags
+	}
+	return tagFiltersTFList, conversionDiags
 }
diff --git a/internal/resources/cloudprovider/resource_azure_credential.go b/internal/resources/cloudprovider/resource_azure_credential.go
index c360c54ef..802a2145d 100644
--- a/internal/resources/cloudprovider/resource_azure_credential.go
+++ b/internal/resources/cloudprovider/resource_azure_credential.go
@@ -370,8 +370,6 @@ func (r *resourceAzureCredential) Update(ctx context.Context, req resource.Updat
 		return
 	}
 	diags = resp.State.SetAttribute(ctx, path.Root("resource_discovery_tag_filter"), convertedTagFilters)
-	resp.Diagnostics.Append(diags...)
-
 	resp.Diagnostics.Append(diags...)
 	if resp.Diagnostics.HasError() {
 		return