Terraform Azure

Provision and manage Azure infrastructure with Terraform using the AzureRM provider. Covers provider configuration, remote state, resource groups, VNets, AKS, Key Vault, complete .tf file examples, and production workflows.

Prerequisites

# Install Terraform
wget -O- https://apt.releases.hashicorp.com/gpg | sudo gpg --dearmor -o /usr/share/keyrings/hashicorp-archive-keyring.gpg
echo "deb [signed-by=/usr/share/keyrings/hashicorp-archive-keyring.gpg] https://apt.releases.hashicorp.com $(lsb_release -cs) main" | sudo tee /etc/apt/sources.list.d/hashicorp.list
sudo apt update && sudo apt install terraform

# Verify installation
terraform version

# Install Azure CLI and login
curl -sL https://aka.ms/InstallAzureCLIDeb | sudo bash
az login
az account set --subscription "my-subscription-id"

# Create storage account for remote state
az group create --name tfstate-rg --location eastus
az storage account create \
  --name tfstate$(openssl rand -hex 4) \
  --resource-group tfstate-rg \
  --sku Standard_LRS \
  --encryption-services blob
az storage container create \
  --name tfstate \
  --account-name tfstateXXXXXXXX

Provider Configuration

providers.tf

terraform {
  required_version = ">= 1.5.0"

  required_providers {
    azurerm = {
      source  = "hashicorp/azurerm"
      version = "~> 3.80"
    }
    azuread = {
      source  = "hashicorp/azuread"
      version = "~> 2.47"
    }
    random = {
      source  = "hashicorp/random"
      version = "~> 3.6"
    }
  }

  backend "azurerm" {
    resource_group_name  = "tfstate-rg"
    storage_account_name = "tfstate12345abc"
    container_name       = "tfstate"
    key                  = "prod.terraform.tfstate"
  }
}

provider "azurerm" {
  features {
    key_vault {
      purge_soft_delete_on_destroy    = false
      recover_soft_deleted_key_vaults = true
    }
    resource_group {
      prevent_deletion_if_contains_resources = true
    }
  }
  # Optional: use a specific subscription
  # subscription_id = var.subscription_id
}

provider "azuread" {}

variables.tf

variable "environment" {
  description = "Environment name (dev, staging, prod)"
  type        = string
  validation {
    condition     = contains(["dev", "staging", "prod"], var.environment)
    error_message = "Environment must be dev, staging, or prod."
  }
}

variable "location" {
  description = "Azure region for all resources"
  type        = string
  default     = "eastus"
}

variable "project_name" {
  description = "Project name used in resource naming"
  type        = string
  default     = "myapp"
}

variable "tags" {
  description = "Tags applied to all resources"
  type        = map(string)
  default     = {}
}

variable "sql_admin_password" {
  description = "SQL Server admin password"
  type        = string
  sensitive   = true
}

variable "aks_admin_group_id" {
  description = "Azure AD group ID for AKS admin access"
  type        = string
}

locals {
  name_prefix = "${var.project_name}-${var.environment}"
  common_tags = merge(var.tags, {
    environment = var.environment
    project     = var.project_name
    managed_by  = "terraform"
  })
}

terraform.tfvars (per environment)

# terraform.prod.tfvars
environment        = "prod"
location           = "eastus"
project_name       = "myapp"
aks_admin_group_id = "xxxxxxxx-xxxx-xxxx-xxxx-xxxxxxxxxxxx"

tags = {
  cost_center = "engineering"
  owner       = "platform-team"
}

Resource Group

resource-group.tf

resource "azurerm_resource_group" "main" {
  name     = "${local.name_prefix}-rg"
  location = var.location
  tags     = local.common_tags
}

Virtual Network

network.tf

resource "azurerm_virtual_network" "main" {
  name                = "${local.name_prefix}-vnet"
  location            = azurerm_resource_group.main.location
  resource_group_name = azurerm_resource_group.main.name
  address_space       = ["10.0.0.0/16"]
  tags                = local.common_tags
}

resource "azurerm_subnet" "aks" {
  name                 = "aks-subnet"
  resource_group_name  = azurerm_resource_group.main.name
  virtual_network_name = azurerm_virtual_network.main.name
  address_prefixes     = ["10.0.1.0/22"]
}

resource "azurerm_subnet" "app" {
  name                 = "app-subnet"
  resource_group_name  = azurerm_resource_group.main.name
  virtual_network_name = azurerm_virtual_network.main.name
  address_prefixes     = ["10.0.8.0/24"]
}


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