Step-by-Step Guide: Implementing Infrastructure as Code Using Terraform on AWS (With DevOps Best Practices)

Infrastructure as Code (IaC) is now essential for scalable, repeatable, and secure cloud operations. In this guide, you'll learn how to implement IaC using Terraform on AWS — the industry-leading setup for cloud automation. At Intuz, we help teams automate infrastructure and accelerate DevOps workflows using Terraform, AWS, and CI/CD best practices. If you're looking to implement this at scale, we're here to help.

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Published 16 May 2025Updated 20 May 2025

Table of Content

  • What is Infrastructure as Code (IaC)?
    • Why Terraform?
      • Advantages of Terraform:
      • Setting Up Terraform for AWS
        • Step 1: Install Terraform on Ubuntu
          • Step 2: Install and Configure AWS CLI on Ubuntu
            • Step 3: Install Unzip and Other Dependencies
            • Writing Your First Terraform Configuration
              • Step 1: Create a Working Directory
                • Step 2: Define AWS Provider in Terraform
                  • Step 3: Define an EC2 Instance
                  • Initializing and Applying Terraform Code
                    • Step 1: Initialize Terraform
                      • Step 2: Plan Changes
                        • Step 3: Apply the Terraform Configuration
                        • Managing Terraform State
                          • 1. Using Remote State with AWS S3
                            • 2. Destroying Infrastructure
                            • Best Practices for Using Terraform on AWS
                              • Conclusion
                                • Why Choose Intuz for Terraform + AWS Services?
                                  • Let's Automate Your Cloud

                                    Infrastructure as Code (IaC) has revolutionized the way IT teams manage cloud resources. Instead of manually configuring servers, networking, and storage, IaC allows you to define your infrastructure in code. This brings consistency, automation, and scalability to cloud environments.

                                    Mastering Terraform on AWS

                                    What is Infrastructure as Code (IaC)?

                                    Infrastructure as Code allows you to define and provision cloud infrastructure using code. Instead of manually configuring servers or services, everything is automated and version-controlled — just like your application code.

                                    Benefits include:

                                    - Faster deployments

                                    - Version control of infrastructure

                                    - Reduced manual errors

                                    - Scalable and reusable templates


                                    Why Terraform?

                                    Terraform, by HashiCorp, is a powerful, open-source IaC tool that allows you to define both low-level components (like EC2, S3) and high-level services (like Route 53 or VPCs) using HCL (HashiCorp Configuration Language).

                                    Advantages of Terraform:

                                    • Cloud-agnostic (AWS, Azure, GCP) 
                                    • Declarative syntax 
                                    • Reusable modules 
                                    • State management for tracking resource changes 
                                    Harnessing Terraform's 
Core Features for Efficient Cloud Management

                                    Setting Up Terraform for AWS

                                    Before we start writing Terraform code, we need to install Terraform and configure AWS credentials.

                                    Step 1: Install Terraform on Ubuntu

                                    Run the following commands to install Terraform on Ubuntu:

                                    sudo apt update && sudo apt upgrade -y

                                    sudo apt install -y gnupg software-properties-common curl

                                    curl -fsSL https://apt.releases.hashicorp.com/gpg | sudo tee /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 -y terraform

                                    Verify the installation:

                                    terraform --version

                                    Step 2: Install and Configure AWS CLI on Ubuntu

                                    To allow Terraform to interact with AWS, install the AWS CLI:

                                    curl "https://awscli.amazonaws.com/awscli-exe-linux-x86_64.zip" -o "awscliv2.zip"

                                    unzip awscliv2.zip

                                    sudo ./aws/install

                                    Verify the installation:

                                    aws --version

                                    Now, configure AWS credentials:

                                    aws configure

                                    It will prompt for:

                                    • AWS Access Key ID 
                                    • AWS Secret Access Key 
                                    • Default region (e.g., us-east-1) 
                                    • Output format (leave as json) 

                                    Step 3: Install Unzip and Other Dependencies

                                    Terraform might need unzip and other dependencies to function properly. Install them with:

                                    sudo apt install unzip -y

                                    Writing Your First Terraform Configuration

                                    Terraform uses .tf files to define resources. Let's create an AWS EC2 instance using Terraform.

                                    Step 1: Create a Working Directory

                                    Create a new directory for the Terraform project:

                                    mkdir terraform-aws

                                    cd terraform-aws

                                    Step 2: Define AWS Provider in Terraform

                                    Create a file called main.tf and add the following code:

                                    provider "aws" {

                                      region = "us-east-1"

                                    }

                                    This tells Terraform that we are using AWS as our cloud provider in the us-east-1 region.

                                    Step 3: Define an EC2 Instance

                                    Now, we will define an EC2 instance inside main.tf:

                                    resource "aws_instance" "my_ec2" {

                                      ami           = "ami-0c55b159cbfafe1f0"  

                                      instance_type = "t2.micro"

                                      tags = {

                                        Name = "TerraformEC2"

                                      }

                                    }

                                    Here, we are specifying:

                                    • AMI ID: The Amazon Machine Image (AMI) determines the OS of the EC2 instance. Ensure you use an appropriate AMI ID for your region. 
                                    • Instance Type: We are using t2.micro, which is free-tier eligible. 
                                    • Tags: Assigns a name to the instance. 

                                    Initializing and Applying Terraform Code

                                    Step 1: Initialize Terraform

                                    Run the following command to initialize the working directory:

                                    terraform init

                                    This downloads the AWS provider plugin required for Terraform.

                                    Step 2: Plan Changes

                                    Before applying changes, check what Terraform will do:

                                    terraform plan

                                    It will display the resources that will be created.

                                    Step 3: Apply the Terraform Configuration

                                    Run the following command to create the EC2 instance:

                                    terraform apply

                                    It will ask for confirmation. Type yes to proceed. Terraform will then create the instance and display the details.

                                    Managing Terraform State

                                    Terraform keeps track of resources using a state file (terraform.tfstate). This file must be stored securely.

                                    1. Using Remote State with AWS S3

                                    To store the state file remotely, create an S3 bucket and update main.tf:

                                    terraform {

                                      backend "s3" {

                                        bucket = "my-terraform-state-bucket"

                                        key    = "terraform.tfstate"

                                        region = "us-east-1"

                                      }

                                    }

                                    Then, run:

                                    terraform init

                                    This configures Terraform to store the state file in the S3 bucket instead of locally.

                                    2. Destroying Infrastructure

                                    To remove all resources created by Terraform, run:

                                    terraform destroy

                                    This will delete the EC2 instance and any other resources created.

                                    Best Practices for Using Terraform on AWS

                                    Use Version Control

                                    Store your Terraform code in a Git repository.  Use branches to manage changes. 

                                    Implement Remote State Management

                                    Store the state file in S3 with DynamoDB locking to prevent conflicts. 

                                    Use Terraform Modules

                                    Create reusable modules for common resources like EC2, VPCs, and databases. 

                                    Secure Sensitive Data

                                    Use AWS Secrets Manager or environment variables for storing credentials. 

                                    Integrate with CI/CD Pipelines

                                    Use AWS CodePipeline, GitHub Actions, or Jenkins to automate Terraform deployments. 

                                    Conclusion

                                    Terraform makes it easy to manage infrastructure on AWS by defining resources in code. In this guide, we:

                                    • Installed and set up Terraform 
                                    • Defined and deployed an AWS EC2 instance 
                                    • Managed Terraform state 
                                    • Learned how to destroy resources and follow best practices 

                                    By using Terraform, teams can ensure infrastructure consistency, reduce manual errors, and scale cloud environments efficiently. Start experimenting with Terraform today and explore more advanced concepts like networking, security groups, and database provisioning!

                                    Why Choose Intuz for Terraform + AWS Services?

                                    We offer end-to-end DevOps services tailored for fast-growing teams and enterprises:

                                    ✅ Custom Terraform module development

                                    ✅ Secure AWS multi-environment setups

                                    ✅ S3 + DynamoDB state management

                                    ✅ CI/CD integration (GitHub Actions, GitLab, Jenkins)

                                    ✅ Cost optimization & compliance automation

                                    ✅ Post-deployment support & monitoring

                                    Let's Automate Your Cloud

                                    Our certified DevOps engineers specialize in Terraform + AWS infrastructure automation. Whether you’re starting from scratch or scaling an existing cloud setup — we can help. Schedule a Free DevOps Consultation

                                    Let's Discuss Your Project!

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                                    FAQs

                                    What is the difference between Terraform and CloudFormation?

                                    Terraform supports multiple cloud providers and has a more flexible syntax, whereas CloudFormation is AWS-specific.

                                    Is Terraform suitable for production environments?

                                    Absolutely. When properly configured, Terraform offers excellent reliability, automation, and compliance.

                                    Can Intuz help with migrating manual infrastructure to Terraform?

                                    Yes! We provide audits, infrastructure blueprints, and migration services to get you IaC-ready.

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