diff --git a/packages/k8s/src/hooks/prepare-job.ts b/packages/k8s/src/hooks/prepare-job.ts
index f518592f..ea430ccf 100644
--- a/packages/k8s/src/hooks/prepare-job.ts
+++ b/packages/k8s/src/hooks/prepare-job.ts
@@ -5,6 +5,7 @@ import {
   JobContainerInfo,
   ContextPorts,
   PrepareJobArgs,
+  ServiceContainerInfo,
   writeToResponseFile
 } from 'hooklib'
 import path from 'path'
@@ -69,20 +70,11 @@ export async function prepareJob(
     )
   }
 
-  let services: k8s.V1Container[] = []
-  if (args.services?.length) {
-    generateServicesName(args.services)
-    services = args.services.map(service => {
-      core.debug(`Adding service '${service.image}' to pod definition`)
-      return createContainerSpec(
-        service,
-        generateContainerName(service.image),
-        false,
-        extension,
-        service.createOptions
-      )
-    })
-  }
+  const services: k8s.V1Container[] = processServiceContainers(
+    args.services,
+    container,
+    extension
+  )
 
   if (!container && !services?.length) {
     throw new Error('No containers exist, skipping hook invocation')
@@ -152,6 +144,58 @@ export async function prepareJob(
   generateResponseFile(responseFile, args, createdPod, isAlpine)
 }
 
+export function processServiceContainers(
+  services?: ServiceContainerInfo[],
+  container?: k8s.V1Container,
+  extension?: k8s.V1PodTemplateSpec
+): k8s.V1Container[] {
+  if (!services?.length) {
+    return []
+  }
+  generateServicesName(services)
+  const serviceContainers = services.map(service => {
+    core.debug(`Adding service '${service.image}' to pod definition`)
+    return createContainerSpec(
+      service,
+      service.name,
+      false,
+      extension,
+      service.createOptions
+    )
+  })
+
+  const tpuRequestingContainers = services.filter(
+    service =>
+      service.resources?.limits && service.resources.limits['google.com/tpu']
+  )
+
+  if (tpuRequestingContainers.length > 1) {
+    throw new Error(
+      `${tpuRequestingContainers.length} containers request for TPU's. Only 1 container per pod can request for TPU's.`
+    )
+  }
+
+  if (tpuRequestingContainers.length === 1) {
+    if (
+      container?.resources?.requests &&
+      container.resources.requests['google.com/tpu']
+    ) {
+      core.debug(
+        'removing tpu from main container resources request and limits as they are requested by the service container and only 1 container in a pod can request TPU.'
+      )
+      delete container.resources.requests['google.com/tpu']
+      if (
+        container.resources.limits &&
+        container.resources.limits['google.com/tpu']
+      ) {
+        core.debug('removing tpu from main container resource limits')
+        delete container.resources.limits['google.com/tpu']
+      }
+    }
+  }
+  return serviceContainers
+}
+
 // Create JobSet and waits for it to come online
 async function prepareJobSet(
   args: PrepareJobArgs,
@@ -356,11 +400,20 @@ export function createContainerSpec(
   }
 
   podContainer.env = []
-  for (const [key, value] of Object.entries(
-    container['environmentVariables']
-  )) {
-    if (value && key !== 'HOME') {
-      podContainer.env.push({ name: key, value: value as string })
+  if (container['environmentVariables']) {
+    for (const [key, value] of Object.entries(
+      container['environmentVariables']
+    )) {
+      if (value && key !== 'HOME') {
+        podContainer.env.push({ name: key, value: value as string })
+      }
+    }
+
+    if (!('CI' in container['environmentVariables'])) {
+      podContainer.env.push({
+        name: 'CI',
+        value: 'true'
+      })
     }
   }
 
@@ -369,13 +422,6 @@ export function createContainerSpec(
     value: 'true'
   })
 
-  if (!('CI' in container['environmentVariables'])) {
-    podContainer.env.push({
-      name: 'CI',
-      value: 'true'
-    })
-  }
-
   podContainer.volumeMounts = containerVolumes(
     container.userMountVolumes,
     jobContainer
diff --git a/packages/k8s/tests/prepare-job-test.ts b/packages/k8s/tests/prepare-job-test.ts
index a9ee70a1..67901664 100644
--- a/packages/k8s/tests/prepare-job-test.ts
+++ b/packages/k8s/tests/prepare-job-test.ts
@@ -1,18 +1,20 @@
 import * as fs from 'fs'
 import * as path from 'path'
 import { cleanupJob } from '../src/hooks'
-import { createContainerSpec, prepareJob } from '../src/hooks/prepare-job'
+import {
+  createContainerSpec,
+  prepareJob,
+  processServiceContainers
+} from '../src/hooks/prepare-job'
 import { TestHelper } from './test-setup'
 import {
   ENV_HOOK_TEMPLATE_PATH,
   ENV_NUMBER_OF_HOSTS,
   ENV_USE_KUBE_SCHEDULER,
-  generateContainerName,
-  readExtensionFromFile
+  generateContainerName
 } from '../src/k8s/utils'
-import { getEvents, getPodByName } from '../src/k8s'
+import { getPodByName } from '../src/k8s'
 import { V1Container } from '@kubernetes/client-node'
-import * as yaml from 'js-yaml'
 import { JOB_CONTAINER_NAME } from '../src/hooks/constants'
 
 jest.useRealTimers()
@@ -324,3 +326,62 @@ describe('Prepare job', () => {
     }
   )
 })
+
+describe('processServiceContainers', () => {
+  it('generate names for service containers', () => {
+    expect(
+      processServiceContainers(
+        [
+          {
+            image: 'gcr.io/server'
+          },
+          {
+            image: 'gcr.io/server'
+          }
+        ],
+        {
+          name: 'nginx',
+          image: 'nginx:latest',
+          imagePullPolicy: 'IfNotPresent'
+        } as V1Container
+      )
+    ).toEqual(
+      expect.arrayContaining([
+        expect.objectContaining({ name: 'server' }),
+        expect.objectContaining({ name: 'server-1' })
+      ])
+    )
+  })
+
+  it('generate TPU request for service containers', () => {
+    expect(
+      processServiceContainers(
+        [
+          {
+            image: 'gcr.io/server',
+            createOptions: '--tpu=4'
+          }
+        ],
+        {
+          name: 'nginx',
+          image: 'nginx:latest',
+          imagePullPolicy: 'IfNotPresent'
+        } as V1Container
+      )
+    ).toEqual(
+      expect.arrayContaining([
+        expect.objectContaining({
+          name: 'server',
+          resources: {
+            limits: {
+              'google.com/tpu': '4'
+            },
+            requests: {
+              'google.com/tpu': '4'
+            }
+          }
+        })
+      ])
+    )
+  })
+})