diff --git a/apps/studio/components/interfaces/Organization/BillingSettings/Subscription/DowngradeModal.tsx b/apps/studio/components/interfaces/Organization/BillingSettings/Subscription/DowngradeModal.tsx
index 1b8e7a9f729..32b384ba0bf 100644
--- a/apps/studio/components/interfaces/Organization/BillingSettings/Subscription/DowngradeModal.tsx
+++ b/apps/studio/components/interfaces/Organization/BillingSettings/Subscription/DowngradeModal.tsx
@@ -1,3 +1,4 @@
+import { ProjectInfo } from 'data/projects/projects-query'
 import { OrgSubscription, ProjectAddon } from 'data/subscriptions/types'
 import { PricingInformation } from 'shared-data'
 import { Alert, IconAlertOctagon, IconMinusCircle, IconPauseCircle, Modal } from 'ui'
@@ -8,6 +9,7 @@ export interface DowngradeModalProps {
   subscription?: OrgSubscription
   onClose: () => void
   onConfirm: () => void
+  projects: ProjectInfo[]
 }
 
 const ProjectDowngradeListItem = ({ projectAddon }: { projectAddon: ProjectAddon }) => {
@@ -39,7 +41,26 @@ const DowngradeModal = ({
   subscription,
   onClose,
   onConfirm,
+  projects,
 }: DowngradeModalProps) => {
+  // Filter out the micro addon as we're dealing with that separately
+  const previousProjectAddons =
+    subscription?.project_addons.flatMap((projectAddons) => {
+      const addons = projectAddons.addons.filter((it) => it.variant.identifier !== 'ci_micro')
+      if (!addons.length) {
+        return []
+      } else {
+        return {
+          ...projectAddons,
+          // Overwrite addons, filtered out the micro addon
+          addons,
+        }
+      }
+    }) || []
+
+  const hasInstancesOnMicro = projects.some((project) => project.infra_compute_size === 'micro')
+  const downgradingToNano = subscription?.nano_enabled === true
+
   return (
     <Modal
       size="large"
@@ -63,19 +84,25 @@ const DowngradeModal = ({
               </p>
             </Alert>
 
-            {(subscription?.project_addons.length ?? 0) > 0 && (
-              <Alert
-                title={`A total of ${subscription?.project_addons.length} project(s) will be affected from the downgrade`}
-                variant="warning"
-                withIcon
-              >
-                <ul className="space-y-1 max-h-[100px] overflow-y-auto">
-                  {subscription?.project_addons.map((project) => (
-                    <ProjectDowngradeListItem key={project.ref} projectAddon={project} />
-                  ))}
-                </ul>
-              </Alert>
-            )}
+            {(previousProjectAddons.length ?? 0) > 0 ||
+              (hasInstancesOnMicro && downgradingToNano && (
+                <Alert title={`Projects affected by the downgrade`} variant="warning" withIcon>
+                  <ul className="space-y-1 max-h-[100px] overflow-y-auto">
+                    {previousProjectAddons.map((project) => (
+                      <ProjectDowngradeListItem key={project.ref} projectAddon={project} />
+                    ))}
+
+                    {projects
+                      .filter((it) => it.infra_compute_size === 'micro')
+                      .map((project) => (
+                        <li className="list-disc ml-6" key={project.id}>
+                          {project.name}: Compute will be downgraded. Project will also{' '}
+                          <span className="font-bold">need to be restarted</span>.
+                        </li>
+                      ))}
+                  </ul>
+                </Alert>
+              ))}
           </div>
 
           <ul className="mt-4 space-y-5 text-sm">
diff --git a/apps/studio/components/interfaces/Organization/BillingSettings/Subscription/PlanUpdateSidePanel.tsx b/apps/studio/components/interfaces/Organization/BillingSettings/Subscription/PlanUpdateSidePanel.tsx
index ba8be5691fc..85515bb2205 100644
--- a/apps/studio/components/interfaces/Organization/BillingSettings/Subscription/PlanUpdateSidePanel.tsx
+++ b/apps/studio/components/interfaces/Organization/BillingSettings/Subscription/PlanUpdateSidePanel.tsx
@@ -35,6 +35,7 @@ import ExitSurveyModal from './ExitSurveyModal'
 import MembersExceedLimitModal from './MembersExceedLimitModal'
 import PaymentMethodSelection from './PaymentMethodSelection'
 import { formatCurrency } from 'lib/helpers'
+import { useProjectsQuery } from 'data/projects/projects-query'
 
 const PlanUpdateSidePanel = () => {
   const { ui } = useStore()
@@ -52,6 +53,11 @@ const PlanUpdateSidePanel = () => {
     PermissionAction.BILLING_WRITE,
     'stripe.subscriptions'
   )
+  const { data: allProjects } = useProjectsQuery()
+  const orgProjects = (allProjects || []).filter(
+    (it) => it.organization_id === selectedOrganization?.id
+  )
+
   const snap = useOrgSettingsPageStateSnapshot()
   const visible = snap.panelKey === 'subscriptionPlan'
   const onClose = () => {
@@ -329,6 +335,7 @@ const PlanUpdateSidePanel = () => {
         subscription={subscription}
         onClose={() => setSelectedTier(undefined)}
         onConfirm={onConfirmDowngrade}
+        projects={orgProjects}
       />
 
       <Modal
diff --git a/apps/studio/components/interfaces/Settings/Addons/Addons.tsx b/apps/studio/components/interfaces/Settings/Addons/Addons.tsx
index 58f1d6d45e9..f3cc51134d6 100644
--- a/apps/studio/components/interfaces/Settings/Addons/Addons.tsx
+++ b/apps/studio/components/interfaces/Settings/Addons/Addons.tsx
@@ -15,6 +15,7 @@ import {
   IconAlertTriangle,
   IconChevronRight,
   IconExternalLink,
+  IconInfo,
 } from 'ui'
 
 import {
@@ -42,13 +43,14 @@ import { useProjectAddonsQuery } from 'data/subscriptions/project-addons-query'
 import { ProjectAddonVariantMeta } from 'data/subscriptions/types'
 import { useFlag, useProjectByRef, useSelectedOrganization } from 'hooks'
 import { getCloudProviderArchitecture } from 'lib/cloudprovider-utils'
-import { BASE_PATH } from 'lib/constants'
+import { BASE_PATH, INSTANCE_MICRO_SPECS, INSTANCE_NANO_SPECS } from 'lib/constants'
 import { getDatabaseMajorVersion, getSemanticVersion } from 'lib/helpers'
 import { SUBSCRIPTION_PANEL_KEYS, useSubscriptionPageStateSnapshot } from 'state/subscription-page'
 import ComputeInstanceSidePanel from './ComputeInstanceSidePanel'
 import CustomDomainSidePanel from './CustomDomainSidePanel'
-import IPv4SidePanel from './IPv4SidePanel'
 import PITRSidePanel from './PITRSidePanel'
+import IPv4SidePanel from './IPv4SidePanel'
+import { capitalize } from 'lodash'
 
 const Addons = () => {
   const { resolvedTheme } = useTheme()
@@ -101,7 +103,17 @@ const Addons = () => {
   const selectedAddons = addons?.selected_addons ?? []
   const { computeInstance, pitr, customDomain, ipv4 } = getAddons(selectedAddons)
 
-  const meta = computeInstance?.variant?.meta as ProjectAddonVariantMeta | undefined
+  const meta = useMemo(() => {
+    const computeMeta = computeInstance?.variant?.meta as ProjectAddonVariantMeta | undefined
+
+    if (!computeMeta && selectedProject?.infra_compute_size === 'nano') {
+      return INSTANCE_NANO_SPECS
+    } else if (selectedProject?.infra_compute_size === 'micro') {
+      return INSTANCE_MICRO_SPECS
+    }
+
+    return computeMeta
+  }, [selectedProject, computeInstance])
 
   const canUpdateIPv4 = projectSettings?.project.db_ip_addr_config === 'ipv6'
 
@@ -159,11 +171,23 @@ const Addons = () => {
 
       {isSuccess && (
         <>
+          {selectedProject?.infra_compute_size === 'nano' && subscription?.plan.id !== 'free' && (
+            <ScaffoldContainer className="mt-4">
+              <Alert_Shadcn_ variant="default">
+                <IconInfo strokeWidth={2} />
+                <AlertTitle_Shadcn_>Free compute upgrade to Micro</AlertTitle_Shadcn_>
+                <AlertDescription_Shadcn_>
+                  Paid Plans include a free upgrade to Micro compute. Your project is ready to
+                  upgrade for no additional charges.
+                </AlertDescription_Shadcn_>
+              </Alert_Shadcn_>
+            </ScaffoldContainer>
+          )}
           <ScaffoldContainer>
             <ScaffoldSection>
               <ScaffoldSectionDetail>
                 <div className="space-y-6">
-                  <p className="m-0">Optimized compute</p>
+                  <p className="m-0">Compute Size</p>
                   <div className="space-y-2">
                     <p className="text-sm text-foreground-light m-0">More information</p>
                     <div>
@@ -198,15 +222,15 @@ const Addons = () => {
                   <div>
                     <div className="rounded-md bg-surface-100 border border-muted w-[160px] h-[96px] overflow-hidden">
                       <Image
-                        alt="Optimized Compute"
+                        alt="Compute size"
                         width={160}
                         height={96}
                         src={
-                          computeInstance !== undefined
-                            ? `${BASE_PATH}/img/optimized-compute-on${
+                          ['nano', 'micro'].includes(selectedProject?.infra_compute_size || 'micro')
+                            ? `${BASE_PATH}/img/optimized-compute-off${
                                 resolvedTheme?.includes('dark') ? '' : '--light'
                               }.svg`
-                            : `${BASE_PATH}/img/optimized-compute-off${
+                            : `${BASE_PATH}/img/optimized-compute-on${
                                 resolvedTheme?.includes('dark') ? '' : '--light'
                               }.svg`
                         }
@@ -215,7 +239,11 @@ const Addons = () => {
                   </div>
                   <div className="flex-grow">
                     <p className="text-sm text-foreground-light">Current option:</p>
-                    <p>{computeInstance?.variant.name ?? 'Micro'}</p>
+                    <p>
+                      {computeInstance?.variant.name ??
+                        capitalize(selectedProject?.infra_compute_size) ??
+                        'Micro'}
+                    </p>
                     <ProjectUpdateDisabledTooltip
                       projectUpdateDisabled={projectUpdateDisabled}
                       projectNotActive={!isProjectActive}
@@ -239,7 +267,7 @@ const Addons = () => {
                       >
                         <p>
                           Your workload is currently running at the baseline disk IO bandwidth at{' '}
-                          {meta?.baseline_disk_io_mbs?.toLocaleString() ?? 87} Mbps and may suffer
+                          {meta?.baseline_disk_io_mbs?.toLocaleString() ?? '-'} Mbps and may suffer
                           degradation in performance.
                         </p>
                         <p className="mt-1">
@@ -257,7 +285,7 @@ const Addons = () => {
                         <p>
                           If the disk IO budget drops to zero, your workload will run at the
                           baseline disk IO bandwidth at{' '}
-                          {meta?.baseline_disk_io_mbs?.toLocaleString() ?? 87} Mbps and may suffer
+                          {meta?.baseline_disk_io_mbs?.toLocaleString() ?? '-'} Mbps and may suffer
                           degradation in performance.
                         </p>
                         <p className="mt-1">
@@ -280,7 +308,7 @@ const Addons = () => {
                           />
                         </div>
                       </Link>
-                      <p className="text-sm">{meta?.memory_gb ?? 1} GB</p>
+                      <p className="text-sm">{meta?.memory_gb ?? '-'} GB</p>
                     </div>
                     <div className="w-full flex items-center justify-between border-b py-2">
                       <Link href={`/project/${projectRef}/settings/infrastructure#cpu`}>
@@ -296,17 +324,17 @@ const Addons = () => {
                         </div>
                       </Link>
                       <p className="text-sm">
-                        {meta?.cpu_cores ?? 2}-core {cpuArchitecture}{' '}
+                        {meta?.cpu_cores ?? '?'}-core {cpuArchitecture}{' '}
                         {meta?.cpu_dedicated ? '(Dedicated)' : '(Shared)'}
                       </p>
                     </div>
                     <div className="w-full flex items-center justify-between border-b py-2">
                       <p className="text-sm text-foreground-light">No. of direct connections</p>
-                      <p className="text-sm">{meta?.connections_direct ?? 60}</p>
+                      <p className="text-sm">{meta?.connections_direct ?? '-'}</p>
                     </div>
                     <div className="w-full flex items-center justify-between border-b py-2">
                       <p className="text-sm text-foreground-light">No. of pooler connections</p>
-                      <p className="text-sm">{meta?.connections_pooler ?? 200}</p>
+                      <p className="text-sm">{meta?.connections_pooler ?? '-'}</p>
                     </div>
                     <div className="w-full flex items-center justify-between border-b py-2">
                       <Link href={`/project/${projectRef}/settings/infrastructure#disk_io`}>
@@ -322,7 +350,7 @@ const Addons = () => {
                         </div>
                       </Link>
                       <p className="text-sm">
-                        {meta?.max_disk_io_mbs?.toLocaleString() ?? '2,085'} Mbps
+                        {meta?.max_disk_io_mbs?.toLocaleString() ?? '-'} Mbps
                       </p>
                     </div>
                     <div className="w-full flex items-center justify-between py-2">
@@ -339,7 +367,7 @@ const Addons = () => {
                         </div>
                       </Link>
                       <p className="text-sm">
-                        {meta?.baseline_disk_io_mbs?.toLocaleString() ?? 87} Mbps
+                        {meta?.baseline_disk_io_mbs?.toLocaleString() ?? '-'} Mbps
                       </p>
                     </div>
                   </div>
diff --git a/apps/studio/components/interfaces/Settings/Addons/ComputeInstanceSidePanel.tsx b/apps/studio/components/interfaces/Settings/Addons/ComputeInstanceSidePanel.tsx
index a684c1a1903..5771f56abc6 100644
--- a/apps/studio/components/interfaces/Settings/Addons/ComputeInstanceSidePanel.tsx
+++ b/apps/studio/components/interfaces/Settings/Addons/ComputeInstanceSidePanel.tsx
@@ -3,7 +3,7 @@ import { useQueryClient } from '@tanstack/react-query'
 import clsx from 'clsx'
 import Link from 'next/link'
 import { useRouter } from 'next/router'
-import { useEffect, useState } from 'react'
+import { useEffect, useMemo, useState } from 'react'
 
 import { useParams } from 'common'
 import { useTheme } from 'next-themes'
@@ -14,13 +14,15 @@ import { useProjectAddonUpdateMutation } from 'data/subscriptions/project-addon-
 import { useProjectAddonsQuery } from 'data/subscriptions/project-addons-query'
 import { useCheckPermissions, useSelectedOrganization, useStore } from 'hooks'
 import { getCloudProviderArchitecture } from 'lib/cloudprovider-utils'
-import { BASE_PATH, PROJECT_STATUS } from 'lib/constants'
+import { INSTANCE_MICRO_SPECS, PROJECT_STATUS } from 'lib/constants'
 import Telemetry from 'lib/telemetry'
 import { useSubscriptionPageStateSnapshot } from 'state/subscription-page'
 import {
   Alert,
   AlertDescription_Shadcn_,
+  AlertTitle_Shadcn_,
   Alert_Shadcn_,
+  Badge,
   Button,
   IconAlertTriangle,
   IconExternalLink,
@@ -32,41 +34,17 @@ import {
 
 import * as Tooltip from '@radix-ui/react-tooltip'
 import { useOrgSubscriptionQuery } from 'data/subscriptions/org-subscription-query'
-import { AddonVariantId } from 'data/subscriptions/types'
-import { formatCurrency } from 'lib/helpers'
-
-const COMPUTE_CATEGORY_OPTIONS: {
-  id: 'micro' | 'optimized'
-  name: string
-  imageUrl: string
-  imageUrlLight: string
-}[] = [
-  {
-    id: 'micro',
-    name: 'Micro Compute',
-    imageUrl: `${BASE_PATH}/img/optimized-compute-off.svg`,
-    imageUrlLight: `${BASE_PATH}/img/optimized-compute-off--light.svg`,
-  },
-  {
-    id: 'optimized',
-    name: 'Optimized Compute',
-    imageUrl: `${BASE_PATH}/img/optimized-compute-on.svg`,
-    imageUrlLight: `${BASE_PATH}/img/optimized-compute-on--light.svg`,
-  },
-]
+import { AddonVariantId, ProjectAddonVariantMeta } from 'data/subscriptions/types'
 
 const ComputeInstanceSidePanel = () => {
   const queryClient = useQueryClient()
   const { ui } = useStore()
   const router = useRouter()
   const { ref: projectRef } = useParams()
-  const { resolvedTheme } = useTheme()
   const { project: selectedProject } = useProjectContext()
   const organization = useSelectedOrganization()
 
   const [showConfirmationModal, setShowConfirmationModal] = useState(false)
-  const [selectedCategory, setSelectedCategory] = useState<'micro' | 'optimized'>('micro')
-  const [selectedOption, setSelectedOption] = useState<string>('ci_micro')
 
   const canUpdateCompute = useCheckPermissions(
     PermissionAction.BILLING_WRITE,
@@ -109,7 +87,7 @@ const ComputeInstanceSidePanel = () => {
       ui.setNotification({
         duration: 8000,
         category: 'success',
-        message: `Successfully updated compute instance to Micro. Your project is currently being restarted to update its instance`,
+        message: `Successfully updated compute instance. Your project is currently being restarted to update its instance`,
       })
       setProjectStatus(queryClient, projectRef!, PROJECT_STATUS.RESTORING)
       onClose()
@@ -123,32 +101,77 @@ const ComputeInstanceSidePanel = () => {
       })
     },
   })
+
+  const [selectedOption, setSelectedOption] = useState<string>('')
+
   const isSubmitting = isUpdating || isRemoving
 
   const projectId = selectedProject?.id
   const cpuArchitecture = getCloudProviderArchitecture(selectedProject?.cloud_provider)
   const selectedAddons = addons?.selected_addons ?? []
-  const availableAddons = addons?.available_addons ?? []
+  const availableAddons = useMemo(() => {
+    return addons?.available_addons ?? []
+  }, [addons])
 
   const isFreePlan = subscription?.plan?.id === 'free'
   const subscriptionCompute = selectedAddons.find((addon) => addon.type === 'compute_instance')
   const pitrAddon = selectedAddons.find((addon) => addon.type === 'pitr')
-  const availableOptions =
-    availableAddons.find((addon) => addon.type === 'compute_instance')?.variants ?? []
-  const selectedCompute = availableOptions.find((option) => option.identifier === selectedOption)
-  const hasChanges = selectedOption !== (subscriptionCompute?.variant.identifier ?? 'ci_micro')
 
-  const blockMicroDowngradeDueToPitr =
-    pitrAddon !== undefined && selectedOption === 'ci_micro' && hasChanges
+  const hasMicroOptionFromApi = useMemo(() => {
+    return (
+      availableAddons.find((addon) => addon.type === 'compute_instance')?.variants ?? []
+    ).some((variant) => variant.identifier === 'ci_micro')
+  }, [availableAddons])
+
+  const availableOptions = useMemo(() => {
+    const computeOptions =
+      availableAddons.find((addon) => addon.type === 'compute_instance')?.variants ?? []
+
+    // Backwards comp until API is deployed
+    if (!hasMicroOptionFromApi) {
+      // Unshift to push to start of array
+      computeOptions.unshift({
+        identifier: 'ci_micro',
+        name: 'Micro',
+        price_description: '$0.01344/hour (~$10/month)',
+        price: 0.01344,
+        price_interval: 'hourly',
+        price_type: 'usage',
+        // @ts-ignore API types it as Record<string, never>
+        meta: {
+          cpu_cores: INSTANCE_MICRO_SPECS.cpu_cores,
+          cpu_dedicated: INSTANCE_MICRO_SPECS.cpu_dedicated,
+          memory_gb: INSTANCE_MICRO_SPECS.memory_gb,
+          baseline_disk_io_mbs: INSTANCE_MICRO_SPECS.baseline_disk_io_mbs,
+          max_disk_io_mbs: INSTANCE_MICRO_SPECS.max_disk_io_mbs,
+          connections_direct: INSTANCE_MICRO_SPECS.connections_direct,
+          connections_pooler: INSTANCE_MICRO_SPECS.connections_pooler,
+        } as ProjectAddonVariantMeta,
+      })
+    }
+
+    return computeOptions
+  }, [availableAddons, hasMicroOptionFromApi])
+
+  const defaultInstanceSize = useMemo(() => {
+    if (!selectedProject) return ''
+
+    return selectedProject.infra_compute_size === 'nano' ? 'ci_nano' : 'ci_micro'
+  }, [selectedProject])
+
+  const selectedCompute = availableOptions.find((option) => option.identifier === selectedOption)
+  const hasChanges =
+    selectedOption !== (subscriptionCompute?.variant.identifier ?? defaultInstanceSize)
+
+  const blockDowngradeDueToPitr =
+    pitrAddon !== undefined && ['ci_micro', 'ci_nano'].includes(selectedOption) && hasChanges
 
   useEffect(() => {
     if (visible) {
       if (subscriptionCompute !== undefined) {
-        setSelectedCategory('optimized')
         setSelectedOption(subscriptionCompute.variant.identifier)
       } else {
-        setSelectedCategory('micro')
-        setSelectedOption('ci_micro')
+        setSelectedOption(defaultInstanceSize)
       }
       Telemetry.sendActivity(
         {
@@ -169,7 +192,12 @@ const ComputeInstanceSidePanel = () => {
     if (!projectRef) return console.error('Project ref is required')
     if (!projectId) return console.error('Project ID is required')
 
-    if (selectedOption === 'ci_micro' && subscriptionCompute !== undefined) {
+    // Temporary backwards compatibility fix
+    if (
+      !hasMicroOptionFromApi &&
+      selectedOption === 'ci_micro' &&
+      subscriptionCompute !== undefined
+    ) {
       removeAddon({ projectRef, variant: subscriptionCompute.variant.identifier })
     } else {
       updateAddon({
@@ -189,11 +217,7 @@ const ComputeInstanceSidePanel = () => {
         onConfirm={() => setShowConfirmationModal(true)}
         loading={isLoading}
         disabled={
-          isFreePlan ||
-          isLoading ||
-          !hasChanges ||
-          blockMicroDowngradeDueToPitr ||
-          !canUpdateCompute
+          isFreePlan || isLoading || !hasChanges || blockDowngradeDueToPitr || !canUpdateCompute
         }
         tooltip={
           isFreePlan
@@ -219,172 +243,129 @@ const ComputeInstanceSidePanel = () => {
       >
         <SidePanel.Content>
           <div className="py-6 space-y-4">
+            {selectedProject?.infra_compute_size === 'nano' && subscription?.plan.id !== 'free' && (
+              <Alert_Shadcn_ variant="default">
+                <IconInfo strokeWidth={2} />
+                <AlertTitle_Shadcn_>Free compute upgrade to Micro</AlertTitle_Shadcn_>
+                <AlertDescription_Shadcn_>
+                  Paid Plans include a free upgrade to Micro compute. Your project is ready to
+                  upgrade for no additional charges.
+                </AlertDescription_Shadcn_>
+              </Alert_Shadcn_>
+            )}
+
             <p className="text-sm">
               For the database, compute size refers to the amount of CPU and memory allocated to the
               database instance.
             </p>
 
-            <div className="!mt-8 pb-4">
-              <div className="flex gap-3">
-                {COMPUTE_CATEGORY_OPTIONS.map((option) => {
-                  const isSelected = selectedCategory === option.id
-                  return (
-                    <div
-                      key={option.id}
-                      className={clsx('col-span-3 group space-y-1', isFreePlan && 'opacity-75')}
-                      onClick={() => {
-                        setSelectedCategory(option.id)
-                        if (option.id === 'micro') setSelectedOption('ci_micro')
-                        Telemetry.sendActivity(
-                          {
-                            activity: 'Option Selected',
-                            source: 'Dashboard',
-                            data: {
-                              title: 'Change project compute size',
-                              section: 'Add ons',
-                              option: option.name,
-                            },
-                            projectRef,
-                          },
-                          router
-                        )
-                      }}
-                    >
-                      <img
-                        alt="Compute Instance"
-                        className={clsx(
-                          'relative rounded-xl transition border bg-no-repeat bg-center bg-cover cursor-pointer w-[160px] h-[96px]',
-                          isSelected
-                            ? 'border-foreground'
-                            : 'border-foreground-muted opacity-50 group-hover:border-foreground-lighter group-hover:opacity-100'
-                        )}
-                        width={160}
-                        height={96}
-                        src={
-                          resolvedTheme?.includes('dark') ? option.imageUrl : option.imageUrlLight
-                        }
-                      />
-
-                      <p
-                        className={clsx(
-                          'text-sm transition',
-                          isSelected ? 'text-foreground' : 'text-foreground-light'
-                        )}
-                      >
-                        {option.name}
-                      </p>
-                    </div>
-                  )
-                })}
-              </div>
-            </div>
-
-            {selectedCategory === 'optimized' && (
-              <div className="pb-4">
-                {isFreePlan && (
-                  <Alert
-                    withIcon
-                    className="mb-4"
-                    variant="info"
-                    title="Changing your compute size is only available on the Pro plan"
-                    actions={
-                      <Button asChild type="default">
-                        <Link href={`/org/${organization?.slug}/billing?panel=subscriptionPlan`}>
-                          View available plans
-                        </Link>
-                      </Button>
-                    }
-                  >
-                    Upgrade your plan to change the compute size of your project
-                  </Alert>
-                )}
-                <Radio.Group
-                  type="large-cards"
-                  size="tiny"
-                  id="compute-instance"
-                  label={<p className="text-sm">Choose the compute size you want to use</p>}
-                  onChange={(event: any) => setSelectedOption(event.target.value)}
+            <div className="pb-4">
+              {isFreePlan && (
+                <Alert
+                  withIcon
+                  className="mb-4"
+                  variant="info"
+                  title="Changing your compute size is only available on the Pro plan"
+                  actions={
+                    <Button asChild type="default">
+                      <Link href={`/org/${organization?.slug}/billing?panel=subscriptionPlan`}>
+                        View available plans
+                      </Link>
+                    </Button>
+                  }
                 >
-                  {availableOptions.map((option) => (
-                    <Radio
-                      className="col-span-3 !p-0"
-                      disabled={isFreePlan}
-                      name="compute-instance"
-                      key={option.identifier}
-                      checked={selectedOption === option.identifier}
-                      label={option.name}
-                      value={option.identifier}
-                    >
-                      <div className="w-full group">
-                        <div className="border-b border-default px-4 py-2">
-                          <p className="text-sm">{option.name}</p>
-                        </div>
-                        <div className="px-4 py-2">
-                          <p className="text-foreground-light">
-                            {option.meta?.memory_gb ?? 0} GB memory
-                          </p>
-                          <p className="text-foreground-light">
-                            {option.meta?.cpu_cores ?? 0}-core {cpuArchitecture} CPU (
-                            {option.meta?.cpu_dedicated ? 'Dedicated' : 'Shared'})
-                          </p>
-                          <div className="flex justify-between items-center mt-2">
-                            <div className="flex items-center space-x-1">
-                              <span className="text-foreground text-sm">
-                                {formatCurrency(option.price)}
-                              </span>
-                              <span className="text-foreground-light translate-y-[1px]">
-                                {' '}
-                                / {option.price_interval === 'monthly' ? 'month' : 'hour'}
-                              </span>
-                            </div>
-                            {option.price_interval === 'hourly' && (
-                              <Tooltip.Root delayDuration={0}>
-                                <Tooltip.Trigger>
-                                  <div className="flex items-center">
-                                    <IconInfo
-                                      size={14}
-                                      strokeWidth={2}
-                                      className="hover:text-foreground-light"
-                                    />
-                                  </div>
-                                </Tooltip.Trigger>
-                                <Tooltip.Portal>
-                                  <Tooltip.Content side="bottom">
-                                    <Tooltip.Arrow className="radix-tooltip-arrow" />
-                                    <div
-                                      className={[
-                                        'rounded bg-alternative py-1 px-2 leading-none shadow',
-                                        'border border-background',
-                                      ].join(' ')}
-                                    >
-                                      <div className="flex items-center space-x-1">
-                                        <p className="text-foreground text-sm">
-                                          ${Number(option.price * 672).toFixed(0)} - $
-                                          {Number(option.price * 744).toFixed(0)} per month
-                                        </p>
-                                      </div>
-                                    </div>
-                                  </Tooltip.Content>
-                                </Tooltip.Portal>
-                              </Tooltip.Root>
-                            )}
+                  Upgrade your plan to change the compute size of your project
+                </Alert>
+              )}
+              <Radio.Group
+                type="large-cards"
+                size="tiny"
+                id="compute-instance"
+                label={<p className="text-sm">Choose the compute size you want to use</p>}
+                onChange={(event: any) => setSelectedOption(event.target.value)}
+              >
+                {availableOptions.map((option) => (
+                  <Radio
+                    className="col-span-3 !p-0"
+                    disabled={isFreePlan}
+                    name="compute-instance"
+                    key={option.identifier}
+                    checked={selectedOption === option.identifier}
+                    label={option.name}
+                    value={option.identifier}
+                  >
+                    <div className="w-full group">
+                      <div className="border-b border-default px-4 py-2">
+                        <p className="text-sm flex justify-between">
+                          {option.name}{' '}
+                          {(subscriptionCompute?.variant.identifier === option.identifier ||
+                            (!subscriptionCompute &&
+                              option.identifier ===
+                                `ci_${selectedProject?.infra_compute_size}`)) && (
+                            <Badge>Current</Badge>
+                          )}
+                          {selectedProject?.infra_compute_size === 'nano' &&
+                            option.identifier === 'ci_micro' && <Badge>Free Upgrade</Badge>}
+                        </p>
+                      </div>
+                      <div className="px-4 py-2">
+                        <p className="text-foreground-light">
+                          {option.meta?.memory_gb ?? 0} GB memory
+                        </p>
+                        <p className="text-foreground-light">
+                          {option.meta?.cpu_cores ?? 0}-core {cpuArchitecture} CPU (
+                          {option.meta?.cpu_dedicated ? 'Dedicated' : 'Shared'})
+                        </p>
+                        <div className="flex justify-between items-center mt-2">
+                          <div className="flex items-center space-x-1">
+                            <span className="text-foreground text-sm">
+                              {/* Price needs to be exact here */}${option.price}
+                            </span>
+                            <span className="text-foreground-light translate-y-[1px]">
+                              {' '}
+                              / {option.price_interval === 'monthly' ? 'month' : 'hour'}
+                            </span>
                           </div>
+                          {option.price_interval === 'hourly' && (
+                            <Tooltip.Root delayDuration={0}>
+                              <Tooltip.Trigger>
+                                <div className="flex items-center">
+                                  <IconInfo
+                                    size={14}
+                                    strokeWidth={2}
+                                    className="hover:text-foreground-light"
+                                  />
+                                </div>
+                              </Tooltip.Trigger>
+                              <Tooltip.Portal>
+                                <Tooltip.Content side="bottom">
+                                  <Tooltip.Arrow className="radix-tooltip-arrow" />
+                                  <div
+                                    className={[
+                                      'rounded bg-alternative py-1 px-2 leading-none shadow',
+                                      'border border-background',
+                                    ].join(' ')}
+                                  >
+                                    <div className="flex items-center space-x-1">
+                                      <p className="text-foreground text-sm">
+                                        ${Number(option.price * 672).toFixed(0)} - $
+                                        {Number(option.price * 744).toFixed(0)} per month
+                                      </p>
+                                    </div>
+                                  </div>
+                                </Tooltip.Content>
+                              </Tooltip.Portal>
+                            </Tooltip.Root>
+                          )}
                         </div>
                       </div>
-                    </Radio>
-                  ))}
-                </Radio.Group>
-              </div>
-            )}
+                    </div>
+                  </Radio>
+                ))}
+              </Radio.Group>
+            </div>
 
-            {selectedCategory === 'micro' && (
-              <p className="text-sm text-foreground-light">
-                Your database will use the standard Micro size instance of 2-core {cpuArchitecture}{' '}
-                CPU (Shared) with 1GB of memory.
-              </p>
-            )}
-
-            {hasChanges && selectedCategory !== 'micro' && (
+            {hasChanges && (
               <p className="text-sm text-foreground-light">
                 There are no immediate charges when changing compute. Compute Hours are a
                 usage-based item and you're billed at the end of your billing cycle based on your
@@ -401,7 +382,7 @@ const ComputeInstanceSidePanel = () => {
               </p>
             )}
 
-            {hasChanges && !blockMicroDowngradeDueToPitr && (
+            {hasChanges && !blockDowngradeDueToPitr && (
               <Alert
                 withIcon
                 variant="info"
@@ -411,12 +392,12 @@ const ComputeInstanceSidePanel = () => {
               </Alert>
             )}
 
-            {blockMicroDowngradeDueToPitr && (
+            {blockDowngradeDueToPitr && (
               <Alert
                 withIcon
                 variant="info"
                 className="mb-4"
-                title="Disable PITR before downgrading to Micro Compute"
+                title="Disable PITR before downgrading"
                 actions={
                   <Button type="default" onClick={() => snap.setPanelKey('pitr')}>
                     Change PITR
@@ -427,7 +408,10 @@ const ComputeInstanceSidePanel = () => {
                   You currently have PITR enabled. The minimum compute instance size for using PITR
                   is the Small Compute.
                 </p>
-                <p>You need to disable PITR before downgrading to Micro Compute.</p>
+                <p>
+                  You need to disable PITR before downgrading Compute as it requires at least a
+                  Small compute instance.
+                </p>
               </Alert>
             )}
 
@@ -438,7 +422,7 @@ const ComputeInstanceSidePanel = () => {
                   <IconAlertTriangle className="h-4 w-4" />
                   <AlertDescription_Shadcn_>
                     You have a scheduled subscription change that will be canceled if you change
-                    your Optimized Compute add on.
+                    your compute size.
                   </AlertDescription_Shadcn_>
                 </Alert_Shadcn_>
               )}
diff --git a/apps/studio/components/interfaces/Settings/Infrastructure/InfrastructureActivity.tsx b/apps/studio/components/interfaces/Settings/Infrastructure/InfrastructureActivity.tsx
index 9139532007d..e57211d15fe 100644
--- a/apps/studio/components/interfaces/Settings/Infrastructure/InfrastructureActivity.tsx
+++ b/apps/studio/components/interfaces/Settings/Infrastructure/InfrastructureActivity.tsx
@@ -26,14 +26,17 @@ import { useInfraMonitoringQuery } from 'data/analytics/infra-monitoring-query'
 import { useOrgSubscriptionQuery } from 'data/subscriptions/org-subscription-query'
 import { useProjectAddonsQuery } from 'data/subscriptions/project-addons-query'
 import { useResourceWarningsQuery } from 'data/usage/resource-warnings-query'
-import { useFlag, useSelectedOrganization } from 'hooks'
+import { useSelectedOrganization, useSelectedProject } from 'hooks'
 import { TIME_PERIODS_BILLING, TIME_PERIODS_REPORTS } from 'lib/constants/metrics'
 import { INFRA_ACTIVITY_METRICS } from './Infrastructure.constants'
+import { capitalize } from 'lodash'
+import { INSTANCE_MICRO_SPECS, INSTANCE_NANO_SPECS } from 'lib/constants'
 
 const InfrastructureActivity = () => {
   const { ref: projectRef } = useParams()
   const organization = useSelectedOrganization()
   const [dateRange, setDateRange] = useState<any>()
+  const project = useSelectedProject()
 
   const { data: subscription, isLoading: isLoadingSubscription } = useOrgSubscriptionQuery({
     orgSlug: organization?.slug,
@@ -47,13 +50,10 @@ const InfrastructureActivity = () => {
   const selectedAddons = addons?.selected_addons ?? []
 
   const { computeInstance } = getAddons(selectedAddons)
-  const currentComputeInstanceSpecs = computeInstance?.variant?.meta ?? {
-    baseline_disk_io_mbs: 87,
-    max_disk_io_mbs: 2085,
-    cpu_cores: 2,
-    cpu_dedicated: true,
-    memory_gb: 1,
-  }
+  const currentComputeInstanceSpecs =
+    computeInstance?.variant?.meta ?? project?.infra_compute_size === 'nano'
+      ? INSTANCE_NANO_SPECS
+      : INSTANCE_MICRO_SPECS
 
   const currentBillingCycleSelected = useMemo(() => {
     // Selected by default
@@ -273,7 +273,11 @@ const InfrastructureActivity = () => {
                         <p className="text-sm mb-2">Overview</p>
                         <div className="flex items-center justify-between border-b py-1">
                           <p className="text-xs text-foreground-light">Current compute instance</p>
-                          <p className="text-xs">{computeInstance?.variant?.name ?? 'Micro'}</p>
+                          <p className="text-xs">
+                            {computeInstance?.variant?.name ??
+                              capitalize(project?.infra_compute_size) ??
+                              'Micro'}
+                          </p>
                         </div>
                         <div className="flex items-center justify-between border-b py-1">
                           <p className="text-xs text-foreground-light">
diff --git a/apps/studio/data/api.d.ts b/apps/studio/data/api.d.ts
index 6a49f4a8f83..cd8aad5d969 100644
--- a/apps/studio/data/api.d.ts
+++ b/apps/studio/data/api.d.ts
@@ -2808,6 +2808,7 @@ export interface components {
     ProjectAddonType: 'custom_domain' | 'compute_instance' | 'pitr' | 'ipv4'
     /** @enum {string} */
     AddonVariantId:
+      | 'ci_micro'
       | 'ci_small'
       | 'ci_medium'
       | 'ci_large'
@@ -2919,6 +2920,7 @@ export interface components {
       billing_partner: 'fly'
       scheduled_plan_change: components['schemas']['ScheduledPlanChange'] | null
       customer_balance: number
+      nano_enabled: boolean
     }
     UpdateSubscriptionBody: {
       payment_method?: string
diff --git a/apps/studio/lib/constants/infrastructure.ts b/apps/studio/lib/constants/infrastructure.ts
index ba8fe0f49dd..a05be565680 100644
--- a/apps/studio/lib/constants/infrastructure.ts
+++ b/apps/studio/lib/constants/infrastructure.ts
@@ -115,3 +115,33 @@ export const PASSWORD_STRENGTH_PERCENTAGE = {
 }
 
 export const DEFAULT_PROJECT_API_SERVICE_ID = 1
+
+type InstanceSpecs = {
+  baseline_disk_io_mbs: number
+  connections_direct: number
+  connections_pooler: number
+  cpu_cores: number
+  cpu_dedicated: boolean
+  max_disk_io_mbs: number
+  memory_gb: number
+}
+
+export const INSTANCE_NANO_SPECS: InstanceSpecs = {
+  baseline_disk_io_mbs: 43,
+  connections_direct: 30,
+  connections_pooler: 200,
+  cpu_cores: 2,
+  cpu_dedicated: false,
+  max_disk_io_mbs: 2085,
+  memory_gb: 0.5,
+}
+
+export const INSTANCE_MICRO_SPECS: InstanceSpecs = {
+  baseline_disk_io_mbs: 87,
+  connections_direct: 60,
+  connections_pooler: 200,
+  cpu_cores: 2,
+  cpu_dedicated: false,
+  max_disk_io_mbs: 2085,
+  memory_gb: 1,
+}