diff --git a/corporate/lib/stripe.py b/corporate/lib/stripe.py
index d3680ec616..e0a7852dde 100644
--- a/corporate/lib/stripe.py
+++ b/corporate/lib/stripe.py
@@ -633,6 +633,24 @@ def do_change_remote_server_plan_type(remote_server: RemoteZulipServer, plan_typ
     )
 
 
+@transaction.atomic
+def do_deactivate_remote_server(remote_server: RemoteZulipServer) -> None:
+    if remote_server.deactivated:
+        billing_logger.warning(
+            f"Cannot deactivate remote server with ID {remote_server.id}, "
+            "server has already been deactivated."
+        )
+        return
+
+    remote_server.deactivated = True
+    remote_server.save(update_fields=["deactivated"])
+    RemoteZulipServerAuditLog.objects.create(
+        event_type=RealmAuditLog.REMOTE_SERVER_DEACTIVATED,
+        server=remote_server,
+        event_time=timezone_now(),
+    )
+
+
 # Only used for cloud signups
 @catch_stripe_errors
 def process_initial_upgrade(
diff --git a/corporate/tests/test_stripe.py b/corporate/tests/test_stripe.py
index 974928428c..5674e37565 100644
--- a/corporate/tests/test_stripe.py
+++ b/corporate/tests/test_stripe.py
@@ -39,6 +39,7 @@ from corporate.lib.stripe import (
     customer_has_credit_card_as_default_payment_method,
     do_change_remote_server_plan_type,
     do_create_stripe_customer,
+    do_deactivate_remote_server,
     downgrade_small_realms_behind_on_payments_as_needed,
     get_discount_for_realm,
     get_latest_seat_count,
@@ -4448,6 +4449,36 @@ class BillingHelpersTest(ZulipTestCase):
         self.assertEqual(remote_realm_audit_log.extra_data, str(expected_extra_data))
         self.assertEqual(remote_server.plan_type, RemoteZulipServer.PLAN_TYPE_STANDARD)
 
+    def test_deactivate_remote_server(self) -> None:
+        server_uuid = str(uuid.uuid4())
+        remote_server = RemoteZulipServer.objects.create(
+            uuid=server_uuid,
+            api_key="magic_secret_api_key",
+            hostname="demo.example.com",
+            contact_email="email@example.com",
+        )
+        self.assertFalse(remote_server.deactivated)
+
+        do_deactivate_remote_server(remote_server)
+
+        remote_server = RemoteZulipServer.objects.get(uuid=server_uuid)
+        remote_realm_audit_log = RemoteZulipServerAuditLog.objects.filter(
+            event_type=RealmAuditLog.REMOTE_SERVER_DEACTIVATED
+        ).last()
+        assert remote_realm_audit_log is not None
+        self.assertTrue(remote_server.deactivated)
+
+        # Try to deactivate a remote server that is already deactivated
+        with self.assertLogs("corporate.stripe", "WARN") as warning_log:
+            do_deactivate_remote_server(remote_server)
+            self.assertEqual(
+                warning_log.output,
+                [
+                    "WARNING:corporate.stripe:Cannot deactivate remote server with ID "
+                    f"{remote_server.id}, server has already been deactivated."
+                ],
+            )
+
 
 class LicenseLedgerTest(StripeTestCase):
     def test_add_plan_renewal_if_needed(self) -> None:
diff --git a/zerver/models.py b/zerver/models.py
index 90149601e0..71f646a992 100644
--- a/zerver/models.py
+++ b/zerver/models.py
@@ -3916,9 +3916,12 @@ class AbstractRealmAuditLog(models.Model):
     STREAM_MESSAGE_RETENTION_DAYS_CHANGED = 605
 
     # The following values are only for RemoteZulipServerAuditLog
-    # Values are chosen to be 10000 greater than the value in RealmAuditLog.
+    # Values should be exactly 10000 greater than the corresponding
+    # value used for the same purpose in RealmAuditLog (e.g.
+    # REALM_DEACTIVATED = 201, and REMOTE_SERVER_DEACTIVATED = 10201).
     REMOTE_SERVER_CREATED = 10215
     REMOTE_SERVER_PLAN_TYPE_CHANGED = 10204
+    REMOTE_SERVER_DEACTIVATED = 10201
 
     event_type: int = models.PositiveSmallIntegerField()
 
diff --git a/zilencer/migrations/0023_remotezulipserver_deactivated.py b/zilencer/migrations/0023_remotezulipserver_deactivated.py
new file mode 100644
index 0000000000..ada8ae05e0
--- /dev/null
+++ b/zilencer/migrations/0023_remotezulipserver_deactivated.py
@@ -0,0 +1,18 @@
+# Generated by Django 3.2.9 on 2021-12-15 17:26
+
+from django.db import migrations, models
+
+
+class Migration(migrations.Migration):
+
+    dependencies = [
+        ("zilencer", "0022_remotezulipserver_create_audit_log_backfill"),
+    ]
+
+    operations = [
+        migrations.AddField(
+            model_name="remotezulipserver",
+            name="deactivated",
+            field=models.BooleanField(default=False),
+        ),
+    ]
diff --git a/zilencer/models.py b/zilencer/models.py
index 9e3e1ddca3..0cc0089f92 100644
--- a/zilencer/models.py
+++ b/zilencer/models.py
@@ -37,6 +37,9 @@ class RemoteZulipServer(models.Model):
     contact_email: str = models.EmailField(blank=True, null=False)
     last_updated: datetime.datetime = models.DateTimeField("last updated", auto_now=True)
 
+    # Whether the server registration has been deactivated.
+    deactivated: bool = models.BooleanField(default=False)
+
     # Plan types for self-hosted customers
     PLAN_TYPE_SELF_HOSTED = 1
     PLAN_TYPE_STANDARD = 102