terraform-iac

name	terraform-iac
description	Infrastructure as Code with Terraform. Use when provisioning cloud resources, managing state, creating modules, or reviewing Terraform configurations.

Terraform Infrastructure as Code

Comprehensive guide for building, managing, and scaling infrastructure with Terraform.

When to Use

• Provisioning cloud infrastructure (AWS, GCP, Azure, etc.)
• Creating reusable infrastructure modules
• Managing multi-environment deployments
• Reviewing Terraform code for best practices
• Debugging state or plan issues
• Migrating infrastructure between providers

Core Concepts

State Management

Remote State (Required for Teams)

# backend.tf - S3 backend with DynamoDB locking
terraform {
  backend "s3" {
    bucket         = "company-terraform-state"
    key            = "project/environment/terraform.tfstate"
    region         = "us-east-1"
    encrypt        = true
    dynamodb_table = "terraform-locks"
  }
}

State Backend Options:

Backend	Use Case	Locking
S3 + DynamoDB	AWS teams	Yes
GCS	GCP teams	Yes
Azure Blob	Azure teams	Yes
Terraform Cloud	Enterprise/SaaS	Yes
Local	Solo dev only	No

State Commands:

# List resources in state
terraform state list

# Show specific resource
terraform state show aws_instance.web

# Move resource (refactoring)
terraform state mv aws_instance.old aws_instance.new

# Remove from state (not destroy)
terraform state rm aws_instance.imported

# Import existing resource
terraform import aws_instance.web i-1234567890abcdef0

Project Structure

Standard Module Layout:

project/
├── main.tf              # Primary resources
├── variables.tf         # Input variables
├── outputs.tf           # Output values
├── versions.tf          # Provider versions
├── terraform.tfvars     # Variable values (gitignored)
├── backend.tf           # State configuration
│
├── modules/             # Local modules
│   └── vpc/
│       ├── main.tf
│       ├── variables.tf
│       └── outputs.tf
│
└── environments/        # Environment-specific
    ├── dev/
    │   ├── main.tf      # Calls root module
    │   └── terraform.tfvars
    ├── staging/
    └── prod/

versions.tf (Always Pin Versions)

terraform {
  required_version = ">= 1.6.0"

  required_providers {
    aws = {
      source  = "hashicorp/aws"
      version = "~> 5.0"
    }
    random = {
      source  = "hashicorp/random"
      version = "~> 3.5"
    }
  }
}

Variables & Outputs

Variable Types:

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

variable "instance_config" {
  description = "EC2 instance configuration"
  type = object({
    instance_type = string
    volume_size   = number
    tags          = map(string)
  })
  default = {
    instance_type = "t3.micro"
    volume_size   = 20
    tags          = {}
  }
}

variable "allowed_cidrs" {
  description = "List of allowed CIDR blocks"
  type        = list(string)
  default     = []
  sensitive   = false
}

variable "db_password" {
  description = "Database password"
  type        = string
  sensitive   = true  # Prevents logging
}

Outputs:

# outputs.tf
output "instance_id" {
  description = "EC2 instance ID"
  value       = aws_instance.web.id
}

output "connection_string" {
  description = "Database connection string"
  value       = "postgresql://${aws_db_instance.main.endpoint}/${aws_db_instance.main.db_name}"
  sensitive   = true
}

output "all_instance_ips" {
  description = "All instance private IPs"
  value       = [for instance in aws_instance.web : instance.private_ip]
}

Resource Patterns

Conditional Resources:

resource "aws_instance" "bastion" {
  count = var.enable_bastion ? 1 : 0

  ami           = data.aws_ami.amazon_linux.id
  instance_type = "t3.micro"

  tags = {
    Name = "${var.project}-bastion"
  }
}

# Reference conditional resource
output "bastion_ip" {
  value = var.enable_bastion ? aws_instance.bastion[0].public_ip : null
}

for_each (Preferred over count):

variable "instances" {
  type = map(object({
    instance_type = string
    subnet_id     = string
  }))
}

resource "aws_instance" "web" {
  for_each = var.instances

  ami           = data.aws_ami.amazon_linux.id
  instance_type = each.value.instance_type
  subnet_id     = each.value.subnet_id

  tags = {
    Name = "${var.project}-${each.key}"
  }
}

Dynamic Blocks:

resource "aws_security_group" "web" {
  name = "${var.project}-web-sg"

  dynamic "ingress" {
    for_each = var.ingress_rules
    content {
      from_port   = ingress.value.port
      to_port     = ingress.value.port
      protocol    = ingress.value.protocol
      cidr_blocks = ingress.value.cidrs
      description = ingress.value.description
    }
  }

  egress {
    from_port   = 0
    to_port     = 0
    protocol    = "-1"
    cidr_blocks = ["0.0.0.0/0"]
  }
}

Modules

Creating Reusable Modules:

# modules/vpc/main.tf
resource "aws_vpc" "main" {
  cidr_block           = var.cidr_block
  enable_dns_hostnames = true
  enable_dns_support   = true

  tags = merge(var.tags, {
    Name = "${var.name}-vpc"
  })
}

resource "aws_subnet" "public" {
  count = length(var.public_subnets)

  vpc_id                  = aws_vpc.main.id
  cidr_block              = var.public_subnets[count.index]
  availability_zone       = var.availability_zones[count.index]
  map_public_ip_on_launch = true

  tags = merge(var.tags, {
    Name = "${var.name}-public-${count.index + 1}"
    Tier = "Public"
  })
}

# modules/vpc/variables.tf
variable "name" {
  description = "VPC name prefix"
  type        = string
}

variable "cidr_block" {
  description = "VPC CIDR block"
  type        = string
  default     = "10.0.0.0/16"
}

variable "public_subnets" {
  description = "Public subnet CIDR blocks"
  type        = list(string)
  default     = ["10.0.1.0/24", "10.0.2.0/24"]
}

variable "availability_zones" {
  description = "Availability zones"
  type        = list(string)
}

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

# modules/vpc/outputs.tf
output "vpc_id" {
  description = "VPC ID"
  value       = aws_vpc.main.id
}

output "public_subnet_ids" {
  description = "Public subnet IDs"
  value       = aws_subnet.public[*].id
}

Using Modules:

# main.tf
module "vpc" {
  source = "./modules/vpc"

  name               = var.project
  cidr_block         = "10.0.0.0/16"
  public_subnets     = ["10.0.1.0/24", "10.0.2.0/24"]
  availability_zones = ["us-east-1a", "us-east-1b"]

  tags = local.common_tags
}

# Using registry modules
module "vpc" {
  source  = "terraform-aws-modules/vpc/aws"
  version = "5.0.0"

  name = var.project
  cidr = "10.0.0.0/16"

  azs             = ["us-east-1a", "us-east-1b"]
  private_subnets = ["10.0.1.0/24", "10.0.2.0/24"]
  public_subnets  = ["10.0.101.0/24", "10.0.102.0/24"]

  enable_nat_gateway = true
  single_nat_gateway = var.environment != "prod"
}

Workspaces

Environment Isolation:

# Create workspaces
terraform workspace new dev
terraform workspace new staging
terraform workspace new prod

# Switch workspace
terraform workspace select prod

# List workspaces
terraform workspace list

Using Workspace in Config:

locals {
  environment = terraform.workspace

  instance_types = {
    dev     = "t3.micro"
    staging = "t3.small"
    prod    = "t3.medium"
  }

  instance_type = local.instance_types[local.environment]
}

resource "aws_instance" "web" {
  instance_type = local.instance_type

  tags = {
    Environment = local.environment
  }
}

Data Sources

Querying Existing Resources:

# Get latest Amazon Linux 2 AMI
data "aws_ami" "amazon_linux" {
  most_recent = true
  owners      = ["amazon"]

  filter {
    name   = "name"
    values = ["amzn2-ami-hvm-*-x86_64-gp2"]
  }
}

# Get current AWS account
data "aws_caller_identity" "current" {}

# Get available AZs
data "aws_availability_zones" "available" {
  state = "available"
}

# Query existing VPC
data "aws_vpc" "existing" {
  tags = {
    Name = "production-vpc"
  }
}

# Use in resources
resource "aws_instance" "web" {
  ami           = data.aws_ami.amazon_linux.id
  subnet_id     = data.aws_vpc.existing.id
}

Security Best Practices

1. Never Hardcode Secrets:

# BAD - Never do this
resource "aws_db_instance" "bad" {
  password = "hardcoded-password"  # NO!
}

# GOOD - Use variables
variable "db_password" {
  type      = string
  sensitive = true
}

resource "aws_db_instance" "good" {
  password = var.db_password
}

# BETTER - Use secrets manager
data "aws_secretsmanager_secret_version" "db" {
  secret_id = "prod/db/password"
}

resource "aws_db_instance" "better" {
  password = jsondecode(data.aws_secretsmanager_secret_version.db.secret_string)["password"]
}

2. Encrypt Everything:

resource "aws_s3_bucket" "data" {
  bucket = "${var.project}-data"
}

resource "aws_s3_bucket_server_side_encryption_configuration" "data" {
  bucket = aws_s3_bucket.data.id

  rule {
    apply_server_side_encryption_by_default {
      sse_algorithm     = "aws:kms"
      kms_master_key_id = aws_kms_key.data.arn
    }
  }
}

resource "aws_s3_bucket_public_access_block" "data" {
  bucket = aws_s3_bucket.data.id

  block_public_acls       = true
  block_public_policy     = true
  ignore_public_acls      = true
  restrict_public_buckets = true
}

3. Least Privilege IAM:

# Specific permissions, not wildcards
resource "aws_iam_policy" "app" {
  name = "${var.project}-app-policy"

  policy = jsonencode({
    Version = "2012-10-17"
    Statement = [
      {
        Effect = "Allow"
        Action = [
          "s3:GetObject",
          "s3:PutObject"
        ]
        Resource = "${aws_s3_bucket.data.arn}/*"
      },
      {
        Effect = "Allow"
        Action = [
          "s3:ListBucket"
        ]
        Resource = aws_s3_bucket.data.arn
      }
    ]
  })
}

Workflow Commands

# Initialize (first time or after backend change)
terraform init

# Format code
terraform fmt -recursive

# Validate syntax
terraform validate

# Plan changes (always review!)
terraform plan -out=tfplan

# Apply from plan file
terraform apply tfplan

# Apply with auto-approve (CI/CD only)
terraform apply -auto-approve  # Dangerous in prod!

# Destroy (careful!)
terraform destroy

# Target specific resource
terraform apply -target=aws_instance.web

# Refresh state from real infrastructure
terraform refresh

# Show current state
terraform show

# Graph dependencies
terraform graph | dot -Tpng > graph.png

Common Patterns

Tagging Strategy:

locals {
  common_tags = {
    Project     = var.project
    Environment = var.environment
    ManagedBy   = "terraform"
    Owner       = var.owner
    CostCenter  = var.cost_center
  }
}

resource "aws_instance" "web" {
  # ...
  tags = merge(local.common_tags, {
    Name = "${var.project}-web"
    Role = "webserver"
  })
}

Lifecycle Rules:

resource "aws_instance" "web" {
  # ...

  lifecycle {
    create_before_destroy = true  # Zero-downtime updates
    prevent_destroy       = true  # Protect critical resources
    ignore_changes        = [     # Ignore external changes
      tags["LastModified"],
    ]
  }
}

Null Resource for Provisioning:

resource "null_resource" "app_deploy" {
  triggers = {
    version = var.app_version
  }

  provisioner "local-exec" {
    command = "./deploy.sh ${var.app_version}"
  }

  depends_on = [aws_instance.web]
}

Troubleshooting

Issue	Solution
State lock stuck	terraform force-unlock LOCK_ID
Resource drift	terraform plan to detect, terraform apply to fix
Import existing	terraform import TYPE.NAME ID
Module not found	terraform init -upgrade
Provider version conflict	Check versions.tf, run terraform init -upgrade

Checklist

Before applying:

• terraform fmt - Code formatted
• terraform validate - Syntax valid
• terraform plan reviewed - No surprises
• Sensitive values marked sensitive = true
• No hardcoded secrets
• Resources tagged properly
• State backend configured (not local)
• Provider versions pinned

Integration

Works with:

• /devops - Infrastructure automation
• /aws, /gcp, /azure - Cloud-specific patterns
• /security - Security review of Terraform code
• policy-as-code skill - Terraform compliance checking