diff --git a/cloud/shepherd/equinix/manager/control_loop.go b/cloud/shepherd/equinix/manager/control_loop.go
index ef0832b..aa4138e 100644
--- a/cloud/shepherd/equinix/manager/control_loop.go
+++ b/cloud/shepherd/equinix/manager/control_loop.go
@@ -192,8 +192,12 @@
 
 	if err := r.loop.processMachine(ctx, t); err != nil {
 		klog.Errorf("Failed to process machine %s: %v", t.machine.MachineID, err)
-		d := 1 * time.Minute
-		err = t.work.Fail(ctx, &d, fmt.Sprintf("failed to process: %v", err))
+		backoff := bmdb.Backoff{
+			Initial:  time.Minute,
+			Maximum:  2 * time.Hour,
+			Exponent: 1.1,
+		}
+		err = t.work.Fail(ctx, &backoff, fmt.Sprintf("failed to process: %v", err))
 		return err
 	}
 	return nil
diff --git a/cloud/shepherd/equinix/manager/initializer.go b/cloud/shepherd/equinix/manager/initializer.go
index 4193f4c..bd1dbba 100644
--- a/cloud/shepherd/equinix/manager/initializer.go
+++ b/cloud/shepherd/equinix/manager/initializer.go
@@ -154,10 +154,7 @@
 func (c *Initializer) processMachine(ctx context.Context, t *task) error {
 	dev, err := c.cl.GetDevice(ctx, c.sharedConfig.ProjectId, t.machine.ProviderID)
 	if err != nil {
-		klog.Errorf("failed to fetch device %q: %v", t.machine.ProviderID, err)
-		d := 30 * time.Second
-		err = t.work.Fail(ctx, &d, "failed to fetch device from equinix")
-		return err
+		return fmt.Errorf("while fetching device %q: %v", t.machine.ProviderID, err)
 	}
 
 	// Start the agent.