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Terraform Best Practices

In this article, we explore best practices for managing Infrastructure as Code (IaC) with Terraform. Terraform is one of the most used tools in the IaC space that enables us to safely and predictably apply changes to our infrastructure.

Starting with Terraform can feel like an intimidating task at first, but a beginner can quickly reach a basic understanding of the tool. After the initial learning period, a new user can then start running commands, creating, and refactoring Terraform code. During this process, many new users face nuances and issues around how to structure their code correctly, use advanced features, apply software development best practices in their IaC process, etc.

Let’s check together some best practices that will assist you in pushing your Terraform skills to the next level. If you are entirely new to Terraform, look at the Terraform Spacelift Blog, where you can find a plethora of material, tutorials, and examples to boost your skills. Terraform Best Practices:

Use remote state
Use existing shared and community modules
Import existing infrastructure
Avoid variables hard-coding
Always format and validate
Use a consistent naming convention
Tag your Resources
Introduce Policy as Code
Implement a Secrets Management Strategy
Test your Terraform code
Enable debug/troubleshooting
Build modules wherever possible
Use loops and conditionals
Use functions
Take advantage of Dynamic Blocks
Use Terraform Workspaces
Use the Lifecycle Block
Use variables validations
Leverage Helper tools to make your life easier
Take advantage of the IDE extensions

Terraform-Specific Best Practices

Here are some Terraform-specific best practices to optimize your code and workflow:

1. Use Remote State

Always use a remote shared state for team collaboration. Pick a backend that supports state locking and backups.

2. Use Shared and Community Modules

Take advantage of existing modules from the Terraform Registry.

3. Import Existing Infrastructure

Use terraform import to manage manually-created infrastructure within Terraform.

4. Avoid Hard-Coding Variables

Use variables to avoid hard-coded values. Retrieve values dynamically through data sources.

5. Always Format and Validate

Use terraform fmt and terraform validate to ensure consistency and catch issues.

6. Use a Consistent Naming Convention

Agree on a naming convention with your team. Use underscores for separators, and lowercase letters in names.

7. Tag Your Resources

A robust tagging strategy improves manageability and cost tracking.

8. Introduce Policy as Code

Leverage tools like Open Policy Agent (OPA) to define and enforce security policies automatically.

9. Implement a Secrets Management Strategy

Store secrets securely using environment variables or secret management tools like HashiCorp Vault.

10. Test Your Terraform Code

Incorporate static analysis, unit tests, and integration tests to ensure Terraform code behaves as expected.

11. Enable Debugging

Set the Terraform log level to DEBUG for troubleshooting:

TF_LOG=DEBUG <terraform command>

12. Build Modules

Group related resources into modules for reusability.

13. Use Loops and Conditionals

Use count, for_each, and conditionals to create dynamic, flexible configurations.

14. Use Functions

Functions allow for more dynamic code by performing operations like data conversion or calculation.

15. Take Advantage of Dynamic Blocks

Use dynamic blocks to create reusable parts of your Terraform configuration.

16. Use Terraform Workspaces

Use workspaces to manage different environments without duplicating configuration.

17. Use the Lifecycle Block

The lifecycle block allows you to control resource creation and destruction, enabling advanced scenarios like zero-downtime deployments.

18. Use Variable Validations

Add validation blocks to variables to enforce constraints and prevent errors.

19. Leverage Helper Tools

Here are some helpful Terraform tools:

  • tflint: Linter for catching errors.
  • tfenv: Terraform version manager.
  • checkov: Static analysis tool.
  • terratest: Go library for testing Terraform.
  • pre-commit-terraform: Pre-commit hooks for automation.
  • terraform-docs: Quickly generates documentation from modules.
  • spacelift: Collaborative Infrastructure Delivery platform.
  • atlantis: Terraform collaboration tool.
  • terraform-cost-estimation: Free cost estimation for Terraform plans.

20. Take Advantage of IDE Extensions

For users of Visual Studio Code, the Terraform extension can speed up development and ensure code is properly formatted.

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