diff --git a/pkg/apis/kops/validation/legacy.go b/pkg/apis/kops/validation/legacy.go
index ae4ddce0ee..53e5ff361c 100644
--- a/pkg/apis/kops/validation/legacy.go
+++ b/pkg/apis/kops/validation/legacy.go
@@ -301,7 +301,8 @@ func ValidateCluster(c *kops.Cluster, strict bool) *field.Error {
 		case kops.CloudProviderGCE:
 			k8sCloudProvider = "gce"
 		case kops.CloudProviderDO:
-			k8sCloudProvider = "external"
+			// cloud provider should be blank since digitalocean uses external cloud controller
+			k8sCloudProvider = ""
 		case kops.CloudProviderVSphere:
 			k8sCloudProvider = "vsphere"
 		case kops.CloudProviderBareMetal:
diff --git a/pkg/model/components/apiserver.go b/pkg/model/components/apiserver.go
index 47bb3cd1e2..586761ea33 100644
--- a/pkg/model/components/apiserver.go
+++ b/pkg/model/components/apiserver.go
@@ -145,7 +145,7 @@ func (b *KubeAPIServerOptionsBuilder) BuildOptions(o interface{}) error {
 	case kops.CloudProviderGCE:
 		c.CloudProvider = "gce"
 	case kops.CloudProviderDO:
-		c.CloudProvider = "external"
+		// not required for digitalocean since it is managed by digitalocean-cloud-controller-manager
 	case kops.CloudProviderVSphere:
 		c.CloudProvider = "vsphere"
 	case kops.CloudProviderBareMetal:
diff --git a/pkg/model/components/kubecontrollermanager.go b/pkg/model/components/kubecontrollermanager.go
index f78efb620a..66a3b9845e 100644
--- a/pkg/model/components/kubecontrollermanager.go
+++ b/pkg/model/components/kubecontrollermanager.go
@@ -105,7 +105,7 @@ func (b *KubeControllerManagerOptionsBuilder) BuildOptions(o interface{}) error
 		kcm.ClusterName = gce.SafeClusterName(b.Context.ClusterName)
 
 	case kops.CloudProviderDO:
-		kcm.CloudProvider = "external"
+		// cloud provider is specified by digitalocean-cloud-controller-manager
 
 	case kops.CloudProviderVSphere:
 		kcm.CloudProvider = "vsphere"