diff --git a/.changeset/warm-llamas-bake.md b/.changeset/warm-llamas-bake.md
new file mode 100644
index 0000000000..3da4a9b94d
--- /dev/null
+++ b/.changeset/warm-llamas-bake.md
@@ -0,0 +1,5 @@
+---
+'@backstage/config-loader': patch
+---
+
+Do not unnecessarily notify subscribers when no-op updates to config happen
diff --git a/packages/config-loader/src/sources/ObservableConfigProxy.test.ts b/packages/config-loader/src/sources/ObservableConfigProxy.test.ts
index d1fccf3e80..f072536489 100644
--- a/packages/config-loader/src/sources/ObservableConfigProxy.test.ts
+++ b/packages/config-loader/src/sources/ObservableConfigProxy.test.ts
@@ -25,21 +25,17 @@ describe('ObservableConfigProxy', () => {
     const sub = config.subscribe(fn);
     expect(config.getOptionalNumber('x')).toBe(undefined);
 
-    config.setConfig(new ConfigReader({}));
-    expect(fn).toHaveBeenCalledTimes(1);
-    expect(config.getOptionalNumber('x')).toBe(undefined);
-
     config.setConfig(new ConfigReader({ x: 1 }));
-    expect(fn).toHaveBeenCalledTimes(2);
+    expect(fn).toHaveBeenCalledTimes(1);
     expect(config.getOptionalNumber('x')).toBe(1);
 
     config.setConfig(new ConfigReader({ x: 3 }));
-    expect(fn).toHaveBeenCalledTimes(3);
+    expect(fn).toHaveBeenCalledTimes(2);
     sub.unsubscribe();
     expect(config.getOptionalNumber('x')).toBe(3);
 
     config.setConfig(new ConfigReader({ x: 5 }));
-    expect(fn).toHaveBeenCalledTimes(3);
+    expect(fn).toHaveBeenCalledTimes(2);
     expect(config.getOptionalNumber('x')).toBe(5);
   });
 
@@ -58,18 +54,10 @@ describe('ObservableConfigProxy', () => {
     expect(config2.getOptionalNumber('x')).toBe(undefined);
     expect(config3.getOptionalNumber('x')).toBe(undefined);
 
-    config1.setConfig(new ConfigReader({}));
+    config1.setConfig(new ConfigReader({ x: 1, a: { x: 2, b: { x: 3 } } }));
     expect(fn1).toHaveBeenCalledTimes(1);
     expect(fn2).toHaveBeenCalledTimes(1);
     expect(fn3).toHaveBeenCalledTimes(1);
-    expect(config1.getOptionalNumber('x')).toBe(undefined);
-    expect(config2.getOptionalNumber('x')).toBe(undefined);
-    expect(config3.getOptionalNumber('x')).toBe(undefined);
-
-    config1.setConfig(new ConfigReader({ x: 1, a: { x: 2, b: { x: 3 } } }));
-    expect(fn1).toHaveBeenCalledTimes(2);
-    expect(fn2).toHaveBeenCalledTimes(2);
-    expect(fn3).toHaveBeenCalledTimes(2);
     expect(config1.getNumber('x')).toBe(1);
     expect(config2.getNumber('x')).toBe(2);
     expect(config3.getNumber('x')).toBe(3);
@@ -79,9 +67,9 @@ describe('ObservableConfigProxy', () => {
     sub3.unsubscribe();
 
     config1.setConfig(new ConfigReader({ x: 4, a: { x: 5, b: { x: 6 } } }));
-    expect(fn1).toHaveBeenCalledTimes(2);
-    expect(fn2).toHaveBeenCalledTimes(2);
-    expect(fn3).toHaveBeenCalledTimes(2);
+    expect(fn1).toHaveBeenCalledTimes(1);
+    expect(fn2).toHaveBeenCalledTimes(1);
+    expect(fn3).toHaveBeenCalledTimes(1);
     expect(config1.getNumber('x')).toBe(4);
     expect(config2.getNumber('x')).toBe(5);
     expect(config3.getNumber('x')).toBe(6);
@@ -140,4 +128,43 @@ describe('ObservableConfigProxy', () => {
       'Only the root config can be closed',
     );
   });
+
+  it('should only notify subscribers when the config data actually changes (ignoring key order)', () => {
+    const config = ObservableConfigProxy.create(new AbortController());
+    const fn = jest.fn();
+    config.subscribe(fn);
+
+    expect(config.getOptionalNumber('a')).toBe(undefined);
+
+    config.setConfig(new ConfigReader({}));
+    expect(fn).toHaveBeenCalledTimes(0);
+    expect(config.getOptionalNumber('a')).toBe(undefined);
+
+    config.setConfig(
+      new ConfigReader({
+        a: 1,
+        b: 1,
+      }),
+    );
+    expect(fn).toHaveBeenCalledTimes(1);
+    expect(config.getOptionalNumber('a')).toBe(1);
+
+    config.setConfig(
+      new ConfigReader({
+        b: 1,
+        a: 1,
+      }),
+    );
+    expect(fn).toHaveBeenCalledTimes(1);
+    expect(config.getOptionalNumber('a')).toBe(1);
+
+    config.setConfig(
+      new ConfigReader({
+        b: 1,
+        a: 2,
+      }),
+    );
+    expect(fn).toHaveBeenCalledTimes(2);
+    expect(config.getOptionalNumber('a')).toBe(2);
+  });
 });
diff --git a/packages/config-loader/src/sources/ObservableConfigProxy.ts b/packages/config-loader/src/sources/ObservableConfigProxy.ts
index 59be836160..3d2084beac 100644
--- a/packages/config-loader/src/sources/ObservableConfigProxy.ts
+++ b/packages/config-loader/src/sources/ObservableConfigProxy.ts
@@ -16,6 +16,7 @@
 
 import { Config, ConfigReader } from '@backstage/config';
 import { JsonValue } from '@backstage/types';
+import isEqual from 'lodash/isEqual';
 
 export class ObservableConfigProxy implements Config {
   private config: Config = new ConfigReader({});
@@ -40,12 +41,22 @@ export class ObservableConfigProxy implements Config {
     if (this.parent) {
       throw new Error('immutable');
     }
+
+    // We only notify subscribers if the data contents of the config actually
+    // changed. If they didn't, there's no point in callers trying to re-read
+    // them. However we still want to replace the local config object, since its
+    // runtime implementation could be entirely different.
+    const changed = !isEqual(this.config.get(), config.get());
+
     this.config = config;
-    for (const subscriber of this.subscribers) {
-      try {
-        subscriber();
-      } catch (error) {
-        console.error(`Config subscriber threw error, ${error}`);
+
+    if (changed) {
+      for (const subscriber of this.subscribers) {
+        try {
+          subscriber();
+        } catch (error) {
+          console.error(`Config subscriber threw error, ${error}`);
+        }
       }
     }
   }