diff --git a/packages/angular_devkit/build_angular/src/builders/karma/tests/setup.ts b/packages/angular_devkit/build_angular/src/builders/karma/tests/setup.ts
index 49d0633f7a21..86449d8c9d0a 100644
--- a/packages/angular_devkit/build_angular/src/builders/karma/tests/setup.ts
+++ b/packages/angular_devkit/build_angular/src/builders/karma/tests/setup.ts
@@ -20,7 +20,7 @@ export const KARMA_BUILDER_INFO = Object.freeze({
  * Also disables progress reporting to minimize logging output.
  */
 export const BASE_OPTIONS = Object.freeze<Schema>({
-  polyfills: ['zone.js', 'zone.js/testing', '@angular/localize/init'],
+  polyfills: ['zone.js', 'zone.js/testing'],
   tsConfig: 'src/tsconfig.spec.json',
   karmaConfig: 'karma.conf.js',
   browsers: 'ChromeHeadlessCI',
diff --git a/packages/angular_devkit/build_angular/src/webpack/configs/common.ts b/packages/angular_devkit/build_angular/src/webpack/configs/common.ts
index 6b7c85c021f3..8e98c191e91b 100644
--- a/packages/angular_devkit/build_angular/src/webpack/configs/common.ts
+++ b/packages/angular_devkit/build_angular/src/webpack/configs/common.ts
@@ -96,14 +96,33 @@ export async function getCommonConfig(wco: WebpackConfigOptions): Promise<Config
     extraPlugins.push(new ProgressPlugin(platform));
   }
 
+  const localizePackageInitEntryPoint = '@angular/localize/init';
+  const hasLocalizeType = tsConfig.options.types?.some(
+    (t) => t === '@angular/localize' || t === localizePackageInitEntryPoint,
+  );
+
+  if (hasLocalizeType) {
+    entryPoints['main'] = [localizePackageInitEntryPoint];
+  }
+
   if (buildOptions.main) {
     const mainPath = path.resolve(root, buildOptions.main);
-    entryPoints['main'] = [mainPath];
+    if (Array.isArray(entryPoints['main'])) {
+      entryPoints['main'].push(mainPath);
+    } else {
+      entryPoints['main'] = [mainPath];
+    }
   }
 
   if (isPlatformServer) {
     // Fixes Critical dependency: the request of a dependency is an expression
     extraPlugins.push(new ContextReplacementPlugin(/@?hapi|express[\\/]/));
+
+    if (Array.isArray(entryPoints['main'])) {
+      // This import must come before any imports (direct or transitive) that rely on DOM built-ins being
+      // available, such as `@angular/elements`.
+      entryPoints['main'].unshift('@angular/platform-server/init');
+    }
   }
 
   if (polyfills?.length) {
diff --git a/packages/angular_devkit/build_angular/test/hello-world-app/angular.json b/packages/angular_devkit/build_angular/test/hello-world-app/angular.json
index a07d22ad3216..ffb889dc2573 100644
--- a/packages/angular_devkit/build_angular/test/hello-world-app/angular.json
+++ b/packages/angular_devkit/build_angular/test/hello-world-app/angular.json
@@ -111,7 +111,7 @@
         "test": {
           "builder": "@angular-devkit/build-angular:karma",
           "options": {
-            "polyfills": ["zone.js", "zone.js/testing", "@angular/localize/init"],
+            "polyfills": ["zone.js", "zone.js/testing"],
 
             "tsConfig": "src/tsconfig.spec.json",
             "karmaConfig": "karma.conf.js",
diff --git a/packages/angular_devkit/build_angular/test/hello-world-app/src/main.server.ts b/packages/angular_devkit/build_angular/test/hello-world-app/src/main.server.ts
index 11c93d4085fd..4448f40d8a49 100644
--- a/packages/angular_devkit/build_angular/test/hello-world-app/src/main.server.ts
+++ b/packages/angular_devkit/build_angular/test/hello-world-app/src/main.server.ts
@@ -6,6 +6,4 @@
  * found in the LICENSE file at https://angular.io/license
  */
 
-import '@angular/localize/init';
-
 export { AppServerModule } from './app/app.server.module';
diff --git a/packages/angular_devkit/build_angular/test/hello-world-app/src/polyfills.ts b/packages/angular_devkit/build_angular/test/hello-world-app/src/polyfills.ts
index eb6530df1887..f530c61c1167 100644
--- a/packages/angular_devkit/build_angular/test/hello-world-app/src/polyfills.ts
+++ b/packages/angular_devkit/build_angular/test/hello-world-app/src/polyfills.ts
@@ -36,9 +36,6 @@
  */
 // import 'web-animations-js';  // Run `npm install --save web-animations-js`.
 
-
-import '@angular/localize/init';
-
 /**
  * By default, zone.js will patch all possible macroTask and DomEvents
  * user can disable parts of macroTask/DomEvents patch by setting following flags
diff --git a/packages/angular_devkit/build_angular/test/hello-world-app/src/tsconfig.app.json b/packages/angular_devkit/build_angular/test/hello-world-app/src/tsconfig.app.json
index f761e8b2c4fc..0fd75806850e 100644
--- a/packages/angular_devkit/build_angular/test/hello-world-app/src/tsconfig.app.json
+++ b/packages/angular_devkit/build_angular/test/hello-world-app/src/tsconfig.app.json
@@ -2,7 +2,7 @@
   "extends": "../tsconfig.json",
   "compilerOptions": {
     "outDir": "../out-tsc/app",
-    "types": []
+    "types": ["@angular/localize/init"]
   },
   "files": [
     "main.ts",
diff --git a/packages/angular_devkit/build_angular/test/hello-world-app/src/tsconfig.server.json b/packages/angular_devkit/build_angular/test/hello-world-app/src/tsconfig.server.json
index 0b0bc22e90b6..9599811a5803 100644
--- a/packages/angular_devkit/build_angular/test/hello-world-app/src/tsconfig.server.json
+++ b/packages/angular_devkit/build_angular/test/hello-world-app/src/tsconfig.server.json
@@ -4,7 +4,7 @@
     "outDir": "../dist-server",
     "target": "es2016",
     "baseUrl": "./",
-    "types": []
+    "types": ["@angular/localize/init"]
   },
   "files": [
     "main.server.ts"
diff --git a/packages/angular_devkit/build_angular/test/hello-world-app/src/tsconfig.spec.json b/packages/angular_devkit/build_angular/test/hello-world-app/src/tsconfig.spec.json
index 7ece4f757a0d..13749f5c0c0c 100644
--- a/packages/angular_devkit/build_angular/test/hello-world-app/src/tsconfig.spec.json
+++ b/packages/angular_devkit/build_angular/test/hello-world-app/src/tsconfig.spec.json
@@ -3,7 +3,8 @@
   "compilerOptions": {
     "outDir": "../out-tsc/spec",
     "types": [
-      "jasmine"
+      "jasmine",
+      "@angular/localize/init"
     ]
   },
   "files": [
diff --git a/packages/schematics/angular/universal/files/root/tsconfig.server.json.template b/packages/schematics/angular/universal/files/root/tsconfig.server.json.template
index f43b41cae4ad..20751626f84d 100644
--- a/packages/schematics/angular/universal/files/root/tsconfig.server.json.template
+++ b/packages/schematics/angular/universal/files/root/tsconfig.server.json.template
@@ -5,7 +5,8 @@
     "outDir": "<%= relativePathToWorkspaceRoot %>/out-tsc/server",
     "target": "es2019",
     "types": [
-      "node"
+      "node"<% if (hasLocalizePackage) { %>,
+      "@angular/localize/init"<% } %>
     ]
   },
   "files": [
diff --git a/packages/schematics/angular/universal/files/src/__main@stripTsExtension__.ts.template b/packages/schematics/angular/universal/files/src/__main@stripTsExtension__.ts.template
index a820cfb07611..5ccc29c792b0 100644
--- a/packages/schematics/angular/universal/files/src/__main@stripTsExtension__.ts.template
+++ b/packages/schematics/angular/universal/files/src/__main@stripTsExtension__.ts.template
@@ -1,16 +1,2 @@
-/***************************************************************************************************
- * Initialize the server environment - for example, adding DOM built-in types to the global scope.
- *
- * NOTE:
- * This import must come before any imports (direct or transitive) that rely on DOM built-ins being
- * available, such as `@angular/elements`.
- */
-import '@angular/platform-server/init';
 
-<% if (hasLocalizePackage) { %>/***************************************************************************************************
- * Load `$localize` onto the global scope - used if i18n tags appear in Angular templates.
- */
-import '@angular/localize/init';
-
-<% } %>
 export { <%= rootModuleClassName %> } from './app/<%= stripTsExtension(rootModuleFileName) %>';
diff --git a/packages/schematics/angular/universal/index.ts b/packages/schematics/angular/universal/index.ts
index 2eae32dcd947..471ca3b61126 100644
--- a/packages/schematics/angular/universal/index.ts
+++ b/packages/schematics/angular/universal/index.ts
@@ -258,7 +258,6 @@ export default function (options: UniversalOptions): Rule {
         ...strings,
         ...options,
         stripTsExtension: (s: string) => s.replace(/\.ts$/, ''),
-        hasLocalizePackage: !!getPackageJsonDependency(host, '@angular/localize'),
       }),
       move(join(normalize(clientProject.root), 'src')),
     ]);
@@ -273,6 +272,7 @@ export default function (options: UniversalOptions): Rule {
         ...options,
         stripTsExtension: (s: string) => s.replace(/\.ts$/, ''),
         tsConfigExtends,
+        hasLocalizePackage: !!getPackageJsonDependency(host, '@angular/localize'),
         relativePathToWorkspaceRoot: relativePathToWorkspaceRoot(tsConfigDirectory),
       }),
       move(tsConfigDirectory),
diff --git a/packages/schematics/angular/universal/index_spec.ts b/packages/schematics/angular/universal/index_spec.ts
index 85a8b5bfa658..56efc3ae9ee4 100644
--- a/packages/schematics/angular/universal/index_spec.ts
+++ b/packages/schematics/angular/universal/index_spec.ts
@@ -9,6 +9,7 @@
 import { SchematicTestRunner, UnitTestTree } from '@angular-devkit/schematics/testing';
 import { parse as parseJson } from 'jsonc-parser';
 import { Schema as ApplicationOptions, Style } from '../application/schema';
+import { CompilerOptions } from '../third_party/github.com/Microsoft/TypeScript/lib/typescript';
 import { NodeDependencyType, addPackageJsonDependency } from '../utility/dependencies';
 import { Schema as WorkspaceOptions } from '../workspace/schema';
 import { Schema as UniversalOptions } from './schema';
@@ -225,36 +226,29 @@ describe('Universal Schematic', () => {
     expect(tree.exists(filePath)).toEqual(true);
   });
 
-  it(`should add import to '@angular/platform-server/init' in main file`, async () => {
+  it(`should not add import to '@angular/localize' as type in 'tsconfig.server.json' when it's not a depedency`, async () => {
     const tree = await schematicRunner
       .runSchematicAsync('universal', defaultOptions, appTree)
       .toPromise();
-    const filePath = '/projects/bar/src/main.server.ts';
-    const contents = tree.readContent(filePath);
-    expect(contents).toContain("import '@angular/platform-server/init'");
+    const { compilerOptions } = tree.readJson('/projects/bar/tsconfig.server.json') as {
+      compilerOptions: CompilerOptions;
+    };
+    expect(compilerOptions.types).not.toContain('@angular/localize/init');
   });
 
-  it(`should not add import to '@angular/localize' in main file when it's not a depedency`, async () => {
-    const tree = await schematicRunner
-      .runSchematicAsync('universal', defaultOptions, appTree)
-      .toPromise();
-    const filePath = '/projects/bar/src/main.server.ts';
-    const contents = tree.readContent(filePath);
-    expect(contents).not.toContain('@angular/localize');
-  });
-
-  it(`should add import to '@angular/localize' in main file when it's a depedency`, async () => {
+  it(`should  add import to '@angular/localize' as type in 'tsconfig.server.json' when it's not a depedency`, async () => {
     addPackageJsonDependency(appTree, {
       name: '@angular/localize',
       type: NodeDependencyType.Default,
       version: 'latest',
     });
-
     const tree = await schematicRunner
       .runSchematicAsync('universal', defaultOptions, appTree)
       .toPromise();
-    const filePath = '/projects/bar/src/main.server.ts';
-    const contents = tree.readContent(filePath);
-    expect(contents).toContain('@angular/localize/init');
+
+    const { compilerOptions } = tree.readJson('/projects/bar/tsconfig.server.json') as {
+      compilerOptions: CompilerOptions;
+    };
+    expect(compilerOptions.types).toContain('@angular/localize/init');
   });
 });