diff --git a/Cargo.lock b/Cargo.lock
index e9004748ae..e2d5e03613 100644
--- a/Cargo.lock
+++ b/Cargo.lock
@@ -770,77 +770,74 @@ dependencies = [
 
 [[package]]
 name = "azure_core"
-version = "0.19.0"
-source = "registry+https://github.com/rust-lang/crates.io-index"
-checksum = "70fd680c0d0424a518229b1150922f92653ba2ac933aa000abc8bf1ca08105f7"
+version = "0.21.0"
+source = "git+https://github.com/neondatabase/azure-sdk-for-rust.git?branch=neon#66e77bdd87bf87e773acf3b0c84b532c1124367d"
 dependencies = [
  "async-trait",
- "base64 0.21.1",
+ "base64 0.22.1",
  "bytes",
  "dyn-clone",
  "futures",
  "getrandom 0.2.11",
  "hmac",
  "http-types",
- "log",
  "once_cell",
  "paste",
  "pin-project",
  "quick-xml 0.31.0",
  "rand 0.8.5",
- "reqwest 0.11.19",
+ "reqwest",
  "rustc_version",
  "serde",
  "serde_json",
  "sha2",
  "time",
+ "tracing",
  "url",
  "uuid",
 ]
 
 [[package]]
 name = "azure_identity"
-version = "0.19.0"
-source = "registry+https://github.com/rust-lang/crates.io-index"
-checksum = "a6d2060f5b2e1c664026ca4edd561306c473be887c1f7a81f10bf06f9b71c63f"
+version = "0.21.0"
+source = "git+https://github.com/neondatabase/azure-sdk-for-rust.git?branch=neon#66e77bdd87bf87e773acf3b0c84b532c1124367d"
 dependencies = [
  "async-lock",
  "async-trait",
  "azure_core",
  "futures",
- "log",
  "oauth2",
  "pin-project",
  "serde",
  "time",
+ "tokio",
+ "tracing",
  "url",
  "uuid",
 ]
 
 [[package]]
 name = "azure_storage"
-version = "0.19.0"
-source = "registry+https://github.com/rust-lang/crates.io-index"
-checksum = "15d3da73bfa09350e1bd6ae2a260806fcf90048c7e78cd2d8f88be60b19a7266"
+version = "0.21.0"
+source = "git+https://github.com/neondatabase/azure-sdk-for-rust.git?branch=neon#66e77bdd87bf87e773acf3b0c84b532c1124367d"
 dependencies = [
  "RustyXML",
  "async-lock",
  "async-trait",
  "azure_core",
  "bytes",
- "log",
  "serde",
  "serde_derive",
  "time",
+ "tracing",
  "url",
  "uuid",
 ]
 
 [[package]]
 name = "azure_storage_blobs"
-version = "0.19.0"
-source = "registry+https://github.com/rust-lang/crates.io-index"
-checksum = "149c21834a4105d761e3dd33d91c2a3064acc05a3c978848ea8089102ae45c94"
+version = "0.21.0"
+source = "git+https://github.com/neondatabase/azure-sdk-for-rust.git?branch=neon#66e77bdd87bf87e773acf3b0c84b532c1124367d"
 dependencies = [
  "RustyXML",
  "azure_core",
@@ -848,20 +845,19 @@ dependencies = [
  "azure_svc_blobstorage",
  "bytes",
  "futures",
- "log",
  "serde",
  "serde_derive",
  "serde_json",
  "time",
+ "tracing",
  "url",
  "uuid",
 ]
 
 [[package]]
 name = "azure_svc_blobstorage"
-version = "0.19.0"
-source = "registry+https://github.com/rust-lang/crates.io-index"
-checksum = "88c888b7bf522d5405218b8613bf0fae7ddaae6ef3bf4ad42ae005993c96ab8b"
+version = "0.21.0"
+source = "git+https://github.com/neondatabase/azure-sdk-for-rust.git?branch=neon#66e77bdd87bf87e773acf3b0c84b532c1124367d"
 dependencies = [
  "azure_core",
  "bytes",
@@ -1287,7 +1283,7 @@ dependencies = [
  "prometheus",
  "regex",
  "remote_storage",
- "reqwest 0.12.4",
+ "reqwest",
  "rlimit",
  "rust-ini",
  "serde",
@@ -1395,7 +1391,7 @@ dependencies = [
  "postgres_backend",
  "postgres_connection",
  "regex",
- "reqwest 0.12.4",
+ "reqwest",
  "safekeeper_api",
  "scopeguard",
  "serde",
@@ -1904,15 +1900,6 @@ dependencies = [
  "zeroize",
 ]
 
-[[package]]
-name = "encoding_rs"
-version = "0.8.32"
-source = "registry+https://github.com/rust-lang/crates.io-index"
-checksum = "071a31f4ee85403370b58aca746f01041ede6f0da2730960ad001edc2b71b394"
-dependencies = [
- "cfg-if",
-]
-
 [[package]]
 name = "enum-map"
 version = "2.5.0"
@@ -3709,7 +3696,7 @@ dependencies = [
  "bytes",
  "http 1.1.0",
  "opentelemetry",
- "reqwest 0.12.4",
+ "reqwest",
 ]
 
 [[package]]
@@ -3726,7 +3713,7 @@ dependencies = [
  "opentelemetry-proto",
  "opentelemetry_sdk",
  "prost",
- "reqwest 0.12.4",
+ "reqwest",
  "thiserror",
 ]
 
@@ -3935,7 +3922,7 @@ dependencies = [
  "range-set-blaze",
  "regex",
  "remote_storage",
- "reqwest 0.12.4",
+ "reqwest",
  "rpds",
  "scopeguard",
  "send-future",
@@ -3988,7 +3975,7 @@ dependencies = [
  "postgres_ffi",
  "rand 0.8.5",
  "remote_storage",
- "reqwest 0.12.4",
+ "reqwest",
  "serde",
  "serde_json",
  "serde_with",
@@ -4008,7 +3995,7 @@ dependencies = [
  "futures",
  "pageserver_api",
  "postgres",
- "reqwest 0.12.4",
+ "reqwest",
  "serde",
  "thiserror",
  "tokio",
@@ -4725,7 +4712,7 @@ dependencies = [
  "redis",
  "regex",
  "remote_storage",
- "reqwest 0.12.4",
+ "reqwest",
  "reqwest-middleware",
  "reqwest-retry",
  "reqwest-tracing",
@@ -5088,47 +5075,6 @@ dependencies = [
  "utils",
 ]
 
-[[package]]
-name = "reqwest"
-version = "0.11.19"
-source = "registry+https://github.com/rust-lang/crates.io-index"
-checksum = "20b9b67e2ca7dd9e9f9285b759de30ff538aab981abaaf7bc9bd90b84a0126c3"
-dependencies = [
- "base64 0.21.1",
- "bytes",
- "encoding_rs",
- "futures-core",
- "futures-util",
- "h2 0.3.26",
- "http 0.2.9",
- "http-body 0.4.5",
- "hyper 0.14.30",
- "hyper-rustls 0.24.0",
- "ipnet",
- "js-sys",
- "log",
- "mime",
- "once_cell",
- "percent-encoding",
- "pin-project-lite",
- "rustls 0.21.12",
- "rustls-pemfile 1.0.2",
- "serde",
- "serde_json",
- "serde_urlencoded",
- "tokio",
- "tokio-rustls 0.24.0",
- "tokio-util",
- "tower-service",
- "url",
- "wasm-bindgen",
- "wasm-bindgen-futures",
- "wasm-streams 0.3.0",
- "web-sys",
- "webpki-roots 0.25.2",
- "winreg 0.50.0",
-]
-
 [[package]]
 name = "reqwest"
 version = "0.12.4"
@@ -5168,10 +5114,10 @@ dependencies = [
  "url",
  "wasm-bindgen",
  "wasm-bindgen-futures",
- "wasm-streams 0.4.0",
+ "wasm-streams",
  "web-sys",
  "webpki-roots 0.26.1",
- "winreg 0.52.0",
+ "winreg",
 ]
 
 [[package]]
@@ -5183,7 +5129,7 @@ dependencies = [
  "anyhow",
  "async-trait",
  "http 1.1.0",
- "reqwest 0.12.4",
+ "reqwest",
  "serde",
  "thiserror",
  "tower-service",
@@ -5202,7 +5148,7 @@ dependencies = [
  "http 1.1.0",
  "hyper 1.4.1",
  "parking_lot 0.11.2",
- "reqwest 0.12.4",
+ "reqwest",
  "reqwest-middleware",
  "retry-policies",
  "thiserror",
@@ -5223,7 +5169,7 @@ dependencies = [
  "http 1.1.0",
  "matchit 0.8.2",
  "opentelemetry",
- "reqwest 0.12.4",
+ "reqwest",
  "reqwest-middleware",
  "tracing",
  "tracing-opentelemetry",
@@ -5587,7 +5533,7 @@ dependencies = [
  "rand 0.8.5",
  "regex",
  "remote_storage",
- "reqwest 0.12.4",
+ "reqwest",
  "safekeeper_api",
  "scopeguard",
  "sd-notify",
@@ -5743,7 +5689,7 @@ source = "registry+https://github.com/rust-lang/crates.io-index"
 checksum = "00421ed8fa0c995f07cde48ba6c89e80f2b312f74ff637326f392fbfd23abe02"
 dependencies = [
  "httpdate",
- "reqwest 0.12.4",
+ "reqwest",
  "rustls 0.21.12",
  "sentry-backtrace",
  "sentry-contexts",
@@ -6198,7 +6144,7 @@ dependencies = [
  "postgres_connection",
  "r2d2",
  "rand 0.8.5",
- "reqwest 0.12.4",
+ "reqwest",
  "routerify",
  "scopeguard",
  "serde",
@@ -6218,7 +6164,7 @@ name = "storage_controller_client"
 version = "0.1.0"
 dependencies = [
  "pageserver_client",
- "reqwest 0.12.4",
+ "reqwest",
  "serde",
  "workspace_hack",
 ]
@@ -6245,7 +6191,7 @@ dependencies = [
  "pageserver_api",
  "postgres_ffi",
  "remote_storage",
- "reqwest 0.12.4",
+ "reqwest",
  "rustls 0.23.18",
  "rustls-native-certs 0.8.0",
  "serde",
@@ -6274,7 +6220,7 @@ dependencies = [
  "humantime",
  "pageserver_api",
  "pageserver_client",
- "reqwest 0.12.4",
+ "reqwest",
  "serde_json",
  "storage_controller_client",
  "tokio",
@@ -7514,19 +7460,6 @@ version = "0.2.92"
 source = "registry+https://github.com/rust-lang/crates.io-index"
 checksum = "af190c94f2773fdb3729c55b007a722abb5384da03bc0986df4c289bf5567e96"
 
-[[package]]
-name = "wasm-streams"
-version = "0.3.0"
-source = "registry+https://github.com/rust-lang/crates.io-index"
-checksum = "b4609d447824375f43e1ffbc051b50ad8f4b3ae8219680c94452ea05eb240ac7"
-dependencies = [
- "futures-util",
- "js-sys",
- "wasm-bindgen",
- "wasm-bindgen-futures",
- "web-sys",
-]
-
 [[package]]
 name = "wasm-streams"
 version = "0.4.0"
@@ -7792,16 +7725,6 @@ dependencies = [
  "memchr",
 ]
 
-[[package]]
-name = "winreg"
-version = "0.50.0"
-source = "registry+https://github.com/rust-lang/crates.io-index"
-checksum = "524e57b2c537c0f9b1e69f1965311ec12182b4122e45035b1508cd24d2adadb1"
-dependencies = [
- "cfg-if",
- "windows-sys 0.48.0",
-]
-
 [[package]]
 name = "winreg"
 version = "0.52.0"
@@ -7876,7 +7799,7 @@ dependencies = [
  "regex",
  "regex-automata 0.4.3",
  "regex-syntax 0.8.2",
- "reqwest 0.12.4",
+ "reqwest",
  "rustls 0.23.18",
  "scopeguard",
  "serde",
diff --git a/Cargo.toml b/Cargo.toml
index a35823e0c2..0654c25a3d 100644
--- a/Cargo.toml
+++ b/Cargo.toml
@@ -51,10 +51,6 @@ anyhow = { version = "1.0", features = ["backtrace"] }
 arc-swap = "1.6"
 async-compression = { version = "0.4.0", features = ["tokio", "gzip", "zstd"] }
 atomic-take = "1.1.0"
-azure_core = { version = "0.19", default-features = false, features = ["enable_reqwest_rustls", "hmac_rust"] }
-azure_identity = { version = "0.19", default-features = false, features = ["enable_reqwest_rustls"] }
-azure_storage = { version = "0.19", default-features = false, features = ["enable_reqwest_rustls"] }
-azure_storage_blobs = { version = "0.19", default-features = false, features = ["enable_reqwest_rustls"] }
 flate2 = "1.0.26"
 async-stream = "0.3"
 async-trait = "0.1"
@@ -216,6 +212,12 @@ postgres-protocol = { git = "https://github.com/neondatabase/rust-postgres.git",
 postgres-types = { git = "https://github.com/neondatabase/rust-postgres.git", branch = "neon" }
 tokio-postgres = { git = "https://github.com/neondatabase/rust-postgres.git", branch = "neon" }
 
+## Azure SDK crates
+azure_core = { git = "https://github.com/neondatabase/azure-sdk-for-rust.git", branch = "neon", default-features = false, features = ["enable_reqwest_rustls", "hmac_rust"] }
+azure_identity = { git = "https://github.com/neondatabase/azure-sdk-for-rust.git", branch = "neon", default-features = false, features = ["enable_reqwest_rustls"] }
+azure_storage = { git = "https://github.com/neondatabase/azure-sdk-for-rust.git", branch = "neon", default-features = false, features = ["enable_reqwest_rustls"] }
+azure_storage_blobs = { git = "https://github.com/neondatabase/azure-sdk-for-rust.git", branch = "neon", default-features = false, features = ["enable_reqwest_rustls"] }
+
 ## Local libraries
 compute_api = { version = "0.1", path = "./libs/compute_api/" }
 consumption_metrics = { version = "0.1", path = "./libs/consumption_metrics/" }
diff --git a/libs/remote_storage/src/azure_blob.rs b/libs/remote_storage/src/azure_blob.rs
index 8d1962fa29..a1d7569140 100644
--- a/libs/remote_storage/src/azure_blob.rs
+++ b/libs/remote_storage/src/azure_blob.rs
@@ -8,15 +8,14 @@ use std::io;
 use std::num::NonZeroU32;
 use std::pin::Pin;
 use std::str::FromStr;
-use std::sync::Arc;
 use std::time::Duration;
 use std::time::SystemTime;
 
 use super::REMOTE_STORAGE_PREFIX_SEPARATOR;
+use anyhow::Context;
 use anyhow::Result;
 use azure_core::request_options::{IfMatchCondition, MaxResults, Metadata, Range};
 use azure_core::{Continuable, RetryOptions};
-use azure_identity::DefaultAzureCredential;
 use azure_storage::StorageCredentials;
 use azure_storage_blobs::blob::CopyStatus;
 use azure_storage_blobs::prelude::ClientBuilder;
@@ -76,8 +75,9 @@ impl AzureBlobStorage {
         let credentials = if let Ok(access_key) = env::var("AZURE_STORAGE_ACCESS_KEY") {
             StorageCredentials::access_key(account.clone(), access_key)
         } else {
-            let token_credential = DefaultAzureCredential::default();
-            StorageCredentials::token_credential(Arc::new(token_credential))
+            let token_credential = azure_identity::create_default_credential()
+                .context("trying to obtain Azure default credentials")?;
+            StorageCredentials::token_credential(token_credential)
         };
 
         // we have an outer retry