Techniques for dynamic resource movement in heterogeneous computing environments including provider substrate extensions are described. A dynamic resource movement service of a provider network monitor conditions of heterogeneous computing environments, including provider substrate extensions of the cloud provider network, to evaluate customer-provided movement policy conditions governing when to move customer application resources from these environments, where to move the resource to, and/or how to move the customer application resources. The customer-provided movement policy conditions may be based on a variety of factors, such as a latency between end-users of the customer application and the application itself.