diff --git a/.gitea/workflows/actions.yaml b/.gitea/workflows/actions.yaml
index 04f50fc..309477b 100644
--- a/.gitea/workflows/actions.yaml
+++ b/.gitea/workflows/actions.yaml
@@ -50,23 +50,29 @@ jobs:
     steps:
       - name: Check out repository code
         uses: actions/checkout@v4
-      - name: Create folder structure
+      - name: Set up build container
         run: |
+          apt-get update && \
+          apt-get install -y \
+            gettext \
+            genisoimage \
+            libguestfs-tools \
+            qemu-system-x86 \
+            qemu-utils
+
           mkdir -p \
-            ubuntu-vm
+            $PWD/ubuntu-vm \
+            /mnt/vmimage
       - name: Download source Ubuntu iso
         run: |
           curl -L \
             https://sn.itch.fyi/Repository/iso/Canonical/Ubuntu%20Server%2024.04/ubuntu-24.04-server-cloudimg-amd64.img \
             -o ubuntu-vm/ubuntu.img \
             -u ${{ secrets.REPO_USERNAME }}:${{ secrets.REPO_PASSWORD }}
+
+          qemu-img resize ubuntu-vm/ubuntu.img +5G
       - name: Generate seed ISO
         run: |
-          apt-get update && \
-          apt-get install -y \
-            gettext \
-            genisoimage
-
           envsubst < cloud-init/user-data.template > cloud-init/user-data
 
           genisoimage \
@@ -78,15 +84,8 @@ jobs:
         env:
           ROOT_HASHED_PASSWORD: ${{ secrets.ROOT_HASHED_PASSWORD }}
           PUBLIC_SSHKEY: ${{ secrets.PUBLIC_SSHKEY }}
-      - name: Start virtual machine
+      - name: Provision template virtual machine
         run: |
-          apt-get update && \
-          apt-get install -y \
-            qemu-system-x86 \
-            qemu-utils
-
-          qemu-img resize ubuntu-vm/ubuntu.img +5G
-
           [ -e /dev/kvm ] && kvm_flag="-enable-kvm" || kvm_flag=""
 
           qemu-system-x86_64 \
@@ -98,11 +97,15 @@ jobs:
             -drive file=ubuntu-vm/seed.iso,format=raw,media=cdrom \
             -nographic \
             -net nic \
-            -net user
+            -net user \
+            -device virtio-serial-pci,id=virtio-serial0 \
+            -chardev socket,path=qga.sock,server=on,wait=off,id=qga0 \
+            -device virtserialport,chardev=qga0,name=org.qemu.guest_agent.0
 
-          qemu-img convert -O qcow2 ubuntu-vm/ubuntu.img ubuntu-vm/ubuntu-compacted.img
-
-          ls -lash ubuntu-vm
+          if ! strings ubuntu-vm/ubuntu.img | grep -q TEMPLATE_GENERATION_SUCCESS; then
+            echo "VM provisioning encountered errors - exiting"
+            exit 1
+          fi
 
   # semrel:
   #   name: Semantic Release
diff --git a/cloud-init/user-data.template b/cloud-init/user-data.template
index cb84c68..ad80d45 100644
--- a/cloud-init/user-data.template
+++ b/cloud-init/user-data.template
@@ -18,7 +18,7 @@ runcmd:
   - truncate -s 0 /etc/hostname /etc/machine-id
   - rm -f /etc/ssh/ssh_host_* /var/lib/dbus/machine-id
   - ln -s /etc/machine-id /var/lib/dbus/machine-id
-  - poweroff
+  - echo "TEMPLATE_GENERATION_SUCCESS" > /var/log/template-generation-success
 
 disable_root: false
 users:
@@ -30,3 +30,8 @@ users:
       - ${PUBLIC_SSHKEY}
 ssh_authorized_keys:
   - ${PUBLIC_SSHKEY}
+
+power_state:
+  delay: now
+  mode: poweroff
+  condition: true