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Showing content from https://learn.microsoft.com/en-us/azure/developer/terraform/create-resource-group below:

Quickstart: Create an Azure resource group using Terraform

This article shows how to create an Azure resource group using Terraform.

Terraform enables the definition, preview, and deployment of cloud infrastructure. Using Terraform, you create configuration files using HCL syntax. The HCL syntax allows you to specify the cloud provider - such as Azure - and the elements that make up your cloud infrastructure. After you create your configuration files, you create an execution plan that allows you to preview your infrastructure changes before they're deployed. Once you verify the changes, you apply the execution plan to deploy the infrastructure.

In this article, you learn how to:

Prerequisites Implement the Terraform code
  1. Create a directory in which to test the sample Terraform code and make it the current directory.

  2. Create a file named providers.tf and insert the following code:

    terraform {
      required_providers {
        azurerm = {
          source  = "hashicorp/azurerm"
          version = "~>4.0"
        }
        random = {
          source  = "hashicorp/random"
          version = "~>3.0"
        }
      }
    }
    
    provider "azurerm" {
      features {}
    }
    
  3. Create a file named main.tf and insert the following code:

    # Create a random name for the resource group using random_pet
    resource "random_pet" "rg_name" {
      prefix = var.resource_group_name_prefix
    }
    
    # Create a resource group using the generated random name
    resource "azurerm_resource_group" "example" {
      location = var.resource_group_location
      name     = random_pet.rg_name.id
    }
    
  4. Create a file named variables.tf and insert the following code:

    variable "resource_group_location" {
      type        = string
      default     = "eastus"
      description = "Location of the resource group."
    }
    
    variable "resource_group_name_prefix" {
      type        = string
      default     = "rg"
      description = "Prefix of the resource group name that's combined with a random ID so name is unique in your Azure subscription."
    }
    
  5. Create a file named outputs.tf and insert the following code:

    output "resource_group_name" {
      value = azurerm_resource_group.example.name
    }
    
Initialize Terraform

Run terraform init to initialize the Terraform deployment. This command downloads the Azure provider required to manage your Azure resources.

terraform init -upgrade

Key points:

Create a Terraform execution plan

Run terraform plan to create an execution plan.

terraform plan -out main.tfplan

Key points:

Apply a Terraform execution plan

Run terraform apply to apply the execution plan to your cloud infrastructure.

terraform apply main.tfplan

Key points:

Verify the results
  1. Get the Azure resource group name.

    resource_group_name=$(terraform output -raw resource_group_name)
    
  2. Run az group show to display the resource group.

    az group show --name $resource_group_name
    
  1. Get the Azure resource group name.

    $resource_group_name=$(terraform output -raw resource_group_name)
    
  2. Run Get-AzResourceGroup to display the resource group.

    Get-AzResourceGroup -Name $resource_group_name
    
Clean up resources

When you no longer need the resources created via Terraform, do the following steps:

  1. Run terraform plan and specify the destroy flag.

    terraform plan -destroy -out main.destroy.tfplan
    

    Key points:

  2. Run terraform apply to apply the execution plan.

    terraform apply main.destroy.tfplan
    
Troubleshoot Terraform on Azure

Troubleshoot common problems when using Terraform on Azure

Next steps

Learn more about using Terraform in Azure


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