diff --git a/.changeset/lemon-fireants-film.md b/.changeset/lemon-fireants-film.md
new file mode 100644
index 000000000..27340ccaf
--- /dev/null
+++ b/.changeset/lemon-fireants-film.md
@@ -0,0 +1,5 @@
+---
+'@astrojs/telemetry': patch
+---
+
+Fix issue where project id fallback was not getting hashed
diff --git a/packages/telemetry/src/project-info.ts b/packages/telemetry/src/project-info.ts
index 66b83c5ac..5b35d910d 100644
--- a/packages/telemetry/src/project-info.ts
+++ b/packages/telemetry/src/project-info.ts
@@ -85,6 +85,6 @@ export function getProjectInfo(isCI: boolean): ProjectInfo {
 	}
 	return {
 		isGit: false,
-		anonymousProjectId: isCI ? '' : process.cwd(),
+		anonymousProjectId: isCI ? '' : createAnonymousValue(process.cwd()),
 	};
 }