From HashiCorp - Using Terraform with Azure

Written on 05/27/2025
Terraform Academy Team - Source HashiCorp

 

Using Terraform with Azure: Automating Infrastructure in the Microsoft Cloud

 

 

Modernize, Automate, and Control Azure Deployments with Terraform

 

Microsoft Azure offers one of the most comprehensive cloud platforms for building and running enterprise workloads. However, provisioning and maintaining Azure infrastructure through the portal or manual scripting quickly becomes inefficient, error-prone, and unscalable. Terraform by HashiCorp provides a better path—using infrastructure as code to define, version, and automate everything from virtual machines to role-based access policies.

 

This guide explores how to use Terraform to create and manage Azure resources in a repeatable, declarative, and policy-driven way.

 

 

 

 

Why Terraform + Azure?

 

 

Terraform’s provider-based model supports deep integration with Azure, enabling full control of your infrastructure with a consistent workflow and syntax. It allows teams to:

 

  • Eliminate configuration drift across environments
  • Define infrastructure dependencies in code
  • Manage entire resource groups with minimal human intervention
  • Version control and peer-review infrastructure definitions alongside application code

 

 

With Terraform, infrastructure is no longer an afterthought—it becomes part of your software delivery lifecycle.

 

 

 

 

What You’ll Learn (Concept Overview)

 

 

Whether you’re automating a development environment or deploying a production-ready workload, Terraform gives you the structure to define and control it with confidence. Key concepts include:

 

  • Setting up the Azure Provider in Terraform
  • Using Service Principals for secure, automated authentication
  • Creating resources such as Resource Groups, Virtual Networks, and Azure VMs
  • Managing Terraform state and locking it with Azure Storage Backend
  • Applying changes with terraform plan, terraform apply, and cleaning up with terraform destroy

 

 

 

 

 

Terraform + Azure: Strategic Benefits

 

 

  • Declarative Resource Management
    Define what you want, and Terraform figures out how to build it in Azure.
  • Multi-Environment Consistency
    Use workspaces or modules to replicate infrastructure across dev, staging, and production with zero drift.
  • Compliance and Governance
    Combine Terraform with Azure Policy or Sentinel (in Terraform Cloud/Enterprise) to enforce controls automatically.
  • Cloud-Native Integration
    Supports all major Azure services including AKS, App Services, Key Vault, Cosmos DB, and more.

 

 

 

 

 

Prerequisites for Azure Integration

 

 

To follow along with any tutorial or deploy your own setup, you’ll need:

 

  • An active Azure subscription
  • Terraform CLI installed locally
  • Azure CLI installed and authenticated
  • A Service Principal with the appropriate role assigned (Contributor is typical for provisioning resources)
  • Basic familiarity with the Azure resource hierarchy (subscriptions, resource groups, regions)

 

 

 

 

 

Final Thoughts

 

 

Using Terraform with Azure enables infrastructure to become programmable, reliable, and scalable. It aligns cloud operations with modern DevOps practices and breaks the dependency on point-and-click provisioning. As organizations migrate to or expand within Azure, Terraform provides the control layer needed to scale with confidence.

 

Explore the video, follow the code, and begin shaping your Azure environments with infrastructure as code—defined by you, governed by policy, and deployed with precision.