diff --git a/pkg/ccl/streamingccl/streamingest/stream_ingestion_job_test.go b/pkg/ccl/streamingccl/streamingest/stream_ingestion_job_test.go
index f36112d5fcbc..712b53b76e31 100644
--- a/pkg/ccl/streamingccl/streamingest/stream_ingestion_job_test.go
+++ b/pkg/ccl/streamingccl/streamingest/stream_ingestion_job_test.go
@@ -80,7 +80,6 @@ func verifyIngestionStats(t *testing.T, streamID int64, cutoverTime time.Time, s
 func TestTenantStreaming(t *testing.T) {
 	defer leaktest.AfterTest(t)()
 	defer log.Scope(t).Close(t)
-	skip.WithIssue(t, 82706)
 
 	skip.UnderRace(t, "slow under race")
 
diff --git a/pkg/server/server_sql.go b/pkg/server/server_sql.go
index d217411d748f..439ea8cf2edf 100644
--- a/pkg/server/server_sql.go
+++ b/pkg/server/server_sql.go
@@ -405,8 +405,12 @@ func newSQLServer(ctx context.Context, cfg sqlServerArgs) (*SQLServer, error) {
 		cfg.AmbientCtx,
 		cfg.stopper, cfg.clock, cfg.db, codec, cfg.Settings, sqllivenessKnobs,
 	)
+	// If the node id is already populated, we only need to create a placeholder
+	// instance provider without initializing the instance, since this is not a
+	// SQL pod server.
+	_, isNotSQLPod := cfg.nodeIDContainer.OptionalNodeID()
 	cfg.sqlInstanceProvider = instanceprovider.New(
-		cfg.stopper, cfg.db, codec, cfg.sqlLivenessProvider, cfg.advertiseAddr, cfg.rangeFeedFactory, cfg.clock,
+		cfg.stopper, cfg.db, codec, cfg.sqlLivenessProvider, cfg.advertiseAddr, cfg.rangeFeedFactory, cfg.clock, isNotSQLPod,
 	)
 
 	if !codec.ForSystemTenant() {
@@ -1156,7 +1160,7 @@ func (s *SQLServer) startSQLLivenessAndInstanceProviders(ctx context.Context) er
 	return nil
 }
 
-func (s *SQLServer) initInstanceID(ctx context.Context) error {
+func (s *SQLServer) setInstanceID(ctx context.Context) error {
 	if _, ok := s.sqlIDContainer.OptionalNodeID(); ok {
 		// sqlIDContainer has already been initialized with a node ID,
 		// we don't need to initialize a SQL instance ID in this case
@@ -1185,8 +1189,8 @@ func (s *SQLServer) preStart(
 	socketFile string,
 	orphanedLeasesTimeThresholdNanos int64,
 ) error {
-	// The sqlliveness and sqlinstance subsystem should be started first to ensure instance ID is
-	// initialized prior to any other systems that need it.
+	// The sqlliveness and sqlinstance subsystem should be started first to ensure
+	// the instance ID is initialized prior to any other systems that need it.
 	if err := s.startSQLLivenessAndInstanceProviders(ctx); err != nil {
 		return err
 	}
@@ -1197,7 +1201,7 @@ func (s *SQLServer) preStart(
 	if err := maybeCheckTenantExists(ctx, s.execCfg.Codec, s.execCfg.DB); err != nil {
 		return err
 	}
-	if err := s.initInstanceID(ctx); err != nil {
+	if err := s.setInstanceID(ctx); err != nil {
 		return err
 	}
 	s.connManager = connManager
diff --git a/pkg/sql/sqlinstance/instanceprovider/instanceprovider.go b/pkg/sql/sqlinstance/instanceprovider/instanceprovider.go
index c9abb511f57c..8ec201fbe416 100644
--- a/pkg/sql/sqlinstance/instanceprovider/instanceprovider.go
+++ b/pkg/sql/sqlinstance/instanceprovider/instanceprovider.go
@@ -47,6 +47,7 @@ type provider struct {
 	instanceID   base.SQLInstanceID
 	sessionID    sqlliveness.SessionID
 	initError    error
+	isSkeleton   bool
 	mu           struct {
 		syncutil.Mutex
 		started bool
@@ -62,6 +63,7 @@ func New(
 	addr string,
 	f *rangefeed.Factory,
 	clock *hlc.Clock,
+	isSkeleton bool,
 ) sqlinstance.Provider {
 	storage := instancestorage.NewStorage(db, codec, slProvider)
 	reader := instancestorage.NewReader(storage, slProvider.CachedReader(), f, codec, clock, stopper)
@@ -72,6 +74,7 @@ func New(
 		session:      slProvider,
 		instanceAddr: addr,
 		initialized:  make(chan struct{}),
+		isSkeleton:   isSkeleton,
 	}
 	return p
 }
@@ -81,6 +84,12 @@ func (p *provider) Start(ctx context.Context) error {
 	if p.started() {
 		return p.initError
 	}
+	// Initialize the instance. We need to do this before starting the reader, so
+	// that the reader sees the instance.
+	if err := p.initAndWait(ctx); err != nil {
+		return err
+	}
+
 	if err := p.Reader.Start(ctx); err != nil {
 		p.initOnce.Do(func() {
 			p.initError = err
@@ -106,21 +115,35 @@ func (p *provider) Instance(
 	if !p.started() {
 		return base.SQLInstanceID(0), "", sqlinstance.NotStartedError
 	}
-
-	p.maybeInitialize()
 	select {
 	case <-ctx.Done():
 		return base.SQLInstanceID(0), "", ctx.Err()
 	case <-p.stopper.ShouldQuiesce():
 		return base.SQLInstanceID(0), "", stop.ErrUnavailable
+	case <-p.initialized:
+		return p.instanceID, p.sessionID, p.initError
+	}
+}
+
+func (p *provider) initAndWait(ctx context.Context) error {
+	if p.isSkeleton {
+		// Don't initialize the instance if the provider is a placeholder.
+		return nil
+	}
+	p.maybeInitialize()
+	select {
+	case <-ctx.Done():
+		return ctx.Err()
+	case <-p.stopper.ShouldQuiesce():
+		return stop.ErrUnavailable
 	case <-p.initialized:
 		if p.initError == nil {
 			log.Ops.Infof(ctx, "created SQL instance %d", p.instanceID)
 		} else {
 			log.Ops.Warningf(ctx, "error creating SQL instance: %s", p.initError)
 		}
-		return p.instanceID, p.sessionID, p.initError
 	}
+	return p.initError
 }
 
 func (p *provider) maybeInitialize() {
diff --git a/pkg/sql/sqlinstance/instanceprovider/instanceprovider_test.go b/pkg/sql/sqlinstance/instanceprovider/instanceprovider_test.go
index 1ccbcee894b0..15949afe64f7 100644
--- a/pkg/sql/sqlinstance/instanceprovider/instanceprovider_test.go
+++ b/pkg/sql/sqlinstance/instanceprovider/instanceprovider_test.go
@@ -65,6 +65,7 @@ func TestInstanceProvider(t *testing.T) {
 		defer stopper.Stop(ctx)
 		instanceProvider := instanceprovider.NewTestInstanceProvider(stopper, slInstance, addr)
 		slInstance.Start(ctx)
+		instanceProvider.InitAndWaitForTest(ctx)
 		instanceID, sessionID, err := instanceProvider.Instance(ctx)
 		require.NoError(t, err)
 		require.Equal(t, expectedInstanceID, instanceID)
@@ -101,6 +102,7 @@ func TestInstanceProvider(t *testing.T) {
 		instanceProvider := instanceprovider.NewTestInstanceProvider(stopper, slInstance, "addr")
 		slInstance.Start(ctx)
 		instanceProvider.ShutdownSQLInstanceForTest(ctx)
+		instanceProvider.InitAndWaitForTest(ctx)
 		_, _, err := instanceProvider.Instance(ctx)
 		require.Error(t, err)
 		require.Equal(t, "instance never initialized", err.Error())
diff --git a/pkg/sql/sqlinstance/instanceprovider/test_helpers.go b/pkg/sql/sqlinstance/instanceprovider/test_helpers.go
index dd83dd00b727..a77e69ffb6c9 100644
--- a/pkg/sql/sqlinstance/instanceprovider/test_helpers.go
+++ b/pkg/sql/sqlinstance/instanceprovider/test_helpers.go
@@ -20,9 +20,10 @@ import (
 )
 
 // TestInstanceProvider exposes ShutdownSQLInstanceForTest
-// method for testing purposes.
+// and InitAndWaitForTest methods for testing purposes.
 type TestInstanceProvider interface {
 	sqlinstance.Provider
+	InitAndWaitForTest(context.Context)
 	ShutdownSQLInstanceForTest(context.Context)
 }
 
@@ -43,6 +44,14 @@ func NewTestInstanceProvider(
 	return p
 }
 
+// InitAndWaitForTest explicitly calls initAndWait for testing purposes.
+func (p *provider) InitAndWaitForTest(ctx context.Context) {
+	if err := p.initAndWait(ctx); err != nil {
+		//nolint:returnerrcheck
+		return
+	}
+}
+
 // ShutdownSQLInstanceForTest explicitly calls shutdownSQLInstance for testing purposes.
 func (p *provider) ShutdownSQLInstanceForTest(ctx context.Context) {
 	p.shutdownSQLInstance(ctx)
diff --git a/pkg/sql/sqlinstance/sqlinstance.go b/pkg/sql/sqlinstance/sqlinstance.go
index 11247e2718dc..e87bef394aca 100644
--- a/pkg/sql/sqlinstance/sqlinstance.go
+++ b/pkg/sql/sqlinstance/sqlinstance.go
@@ -47,8 +47,8 @@ type Provider interface {
 	// Instance returns the instance ID and sqlliveness.SessionID for the
 	// current SQL instance.
 	Instance(context.Context) (base.SQLInstanceID, sqlliveness.SessionID, error)
-	// Start starts the instanceprovider. This will block until
-	// the underlying instance data reader has been started.
+	// Start starts the instanceprovider and initializes the current SQL instance.
+	// This will block until the underlying instance data reader has been started.
 	Start(context.Context) error
 }