Terraform Style Guide

Terraform Style Guide

Adopting and adhering to a style guide keeps your Terraform code legible, scalable, and maintainable. This guide is based on HashiCorp's official Terraform style conventions and best practices, enhanced with Azure Verified Modules (AVM) requirements for Azure-specific Terraform development.

Note on AVM Requirements: The Azure Verified Modules section provides requirements specific to Azure module development. While these requirements are mandatory for AVM certification, many of the patterns and practices have broader applicability to Terraform module development across all cloud providers and can be adopted to improve code quality, consistency, and maintainability in any Terraform project.

Table of Contents

• Code Style Fundamentals
• Code Formatting Standards
• File Organization
• Naming Conventions
• Resource Organization
• Variables and Outputs
• Local Values
• Provider Configuration and Aliasing
• Dynamic Resource Creation
• Version Control
• Workflow Standards
• Multi-Environment Management
• State and Secrets Management
• Testing and Policy
• AWS-Specific Requirements
  • Mandatory Resource Tagging
  • AWS Provider Configuration
  • AWS Resource Naming
• Azure Verified Modules (AVM) Requirements
  • Module Cross-Referencing
  • Azure Provider Requirements
  • AVM Code Style Standards
  • AVM Variable Requirements
  • AVM Output Requirements
  • AVM Testing Requirements
  • Breaking Changes & Feature Management

Code Style Fundamentals

Core Principles

Always follow these fundamental practices:

• Execute terraform fmt before committing code to version control
• Execute terraform validate to catch syntax and configuration errors
• Use # for comments (avoid // and /* */ style comments)
• Name resources with descriptive nouns using underscores, excluding the resource type
• Define dependent resources after their dependencies for better readability
• Include type and description for all variables
• Include descriptions for all outputs
• Use count and for_each judiciously with clear intent

Automation with Git Hooks

Consider using Git pre-commit hooks to automatically run terraform fmt and terraform validate:

#!/bin/bash
# .git/hooks/pre-commit

terraform fmt -recursive
terraform validate

Code Formatting Standards

Terraform has specific formatting conventions that the terraform fmt command automates.

Indentation

• Use two spaces per nesting level
• Never use tabs

resource "aws_instance" "example" {
  ami           = "ami-0c55b159cbfafe1f0"
  instance_type = "t2.micro"

  tags = {
    Name = "example-instance"
  }
}

Alignment

• Align equals signs for consecutive single-line arguments at the same nesting level
• Separate different argument groups with blank lines

# Good - aligned equals signs
resource "aws_instance" "web" {
  ami           = "ami-0c55b159cbfafe1f0"
  instance_type = "t2.micro"
  subnet_id     = "subnet-12345678"

  tags = {
    Name        = "web-server"
    Environment = "production"
  }
}

# Bad - unaligned
resource "aws_instance" "web" {
  ami = "ami-0c55b159cbfafe1f0"
  instance_type = "t2.micro"
  subnet_id = "subnet-12345678"
}

Block Organization

• Arguments precede blocks within a resource
• Separate with one blank line between arguments and blocks
• Meta-arguments come first, followed by standard arguments, then blocks

resource "aws_instance" "example" {
  # Meta-arguments first
  count = 3

  # Standard arguments
  ami           = "ami-0c55b159cbfafe1f0"
  instance_type = "t2.micro"

  # Blocks last
  root_block_device {
    volume_size = 20
  }
}

Spacing

• Use single blank lines to separate logical groups of arguments
• Top-level blocks (resources, data sources, modules) require blank lines between them
• Do not use excessive blank lines

variable "instance_count" {
  description = "Number of instances to create"
  type        = number
  default     = 1
}

variable "instance_type" {
  description = "EC2 instance type"
  type        = string
  default     = "t2.micro"
}

File Organization

Standard File Structure

Organize your Terraform code into these standard files:

Example terraform.tf:

terraform {
  required_version = ">= 1.7"

  required_providers {
    aws = {
      source  = "hashicorp/aws"
      version = "~> 5.34.0"
    }
  }
}

Example providers.tf:

provider "aws" {
  region = var.aws_region

  default_tags {
    tags = {
      ManagedBy = "Terraform"
      Project   = "MyProject"
    }
  }
}

Naming Conventions

General Rules

• Use descriptive nouns and underscores to separate multiple words
• Exclude the resource type from the resource name (redundant)
• Use lowercase for all names
• Be specific and meaningful

Examples

# ❌ Bad - includes resource type, uses hyphens, mixed case
resource "aws_instance" "webAPI-aws-instance" {
  # ...
}

# ✅ Good - descriptive noun, underscores, lowercase
resource "aws_instance" "web_api" {
  # ...
}

# ❌ Bad - too generic
variable "name" {
  type = string
}

# ✅ Good - specific and clear
variable "application_name" {
  type = string
}

Variable Naming

Variables should clearly indicate their purpose:

variable "vpc_cidr_block" {
  description = "CIDR block for the VPC"
  type        = string
}

variable "enable_dns_hostnames" {
  description = "Enable DNS hostnames in the VPC"
  type        = bool
  default     = true
}

Resource Organization

Dependency Order

Define a data source before the resource that references it for better readability:

# Data source first
data "aws_ami" "ubuntu" {
  most_recent = true
  owners      = ["099720109477"]

  filter {
    name   = "name"
    values = ["ubuntu/images/hvm-ssd/ubuntu-focal-20.04-amd64-server-*"]
  }
}

# Resource that uses it second
resource "aws_instance" "web" {
  ami           = data.aws_ami.ubuntu.id
  instance_type = "t2.micro"
}

Parameter Order Within Resources

Follow this standard ordering for resource parameters:

1. count or for_each (meta-arguments)
2. Resource-specific non-block parameters (alphabetically or logically grouped)
3. Resource-specific block parameters
4. lifecycle block (if needed)
5. depends_on (if required, as last resort)

resource "aws_instance" "web" {
  # 1. Meta-arguments
  count = var.instance_count

  # 2. Non-block parameters
  ami           = data.aws_ami.ubuntu.id
  instance_type = var.instance_type
  subnet_id     = aws_subnet.public.id

  # 3. Block parameters
  root_block_device {
    volume_size = 20
    volume_type = "gp3"
  }

  tags = {
    Name = "web-${count.index}"
  }

  # 4. Lifecycle
  lifecycle {
    create_before_destroy = true
  }

  # 5. depends_on (avoid if possible)
  # depends_on = [aws_iam_role_policy.example]
}

Variables and Outputs

Variable Declaration Standards

Every variable must include:

• type - the data type
• description - clear explanation of purpose

Optional but recommended:

• default - default value if applicable
• sensitive - mark as true for secrets
• validation - for uniquely restrictive requirements

variable "instance_type" {
  description = "EC2 instance type for the web server"
  type        = string
  default     = "t2.micro"

  validation {
    condition     = contains(["t2.micro", "t2.small", "t2.medium"], var.instance_type)
    error_message = "Instance type must be t2.micro, t2.small, or t2.medium."
  }
}

variable "database_password" {
  description = "Password for the database admin user"
  type        = string
  sensitive   = true
}

variable "availability_zones" {
  description = "List of availability zones for resource placement"
  type        = list(string)
}

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

Output Declaration Standards

Every output must include:

• description - clear explanation of the value

Optional attributes:

• sensitive - mark as true to hide from console output
• depends_on - explicit dependencies if needed

output "instance_id" {
  description = "ID of the EC2 instance"
  value       = aws_instance.web.id
}

output "instance_public_ip" {
  description = "Public IP address of the EC2 instance"
  value       = aws_instance.web.public_ip
}

output "database_password" {
  description = "Database administrator password"
  value       = aws_db_instance.main.password
  sensitive   = true
}

Variable Files Organization

Organize variables alphabetically in variables.tf and use .tfvars files for environment-specific values:

# terraform.tfvars (or dev.tfvars, prod.tfvars)
instance_type      = "t2.micro"
instance_count     = 3
availability_zones = ["us-west-2a", "us-west-2b"]

Local Values

Usage Guidelines

Use local values sparingly to avoid unnecessary complexity. Locals are appropriate when:

• Avoiding repetition of complex expressions
• Giving meaningful names to intermediate values
• Computing values used multiple times

locals {
  # Good use case - computing a reusable value
  common_tags = merge(
    var.tags,
    {
      Environment = var.environment
      ManagedBy   = "Terraform"
      Project     = var.project_name
    }
  )

  # Good use case - naming a complex expression
  vpc_id = var.create_vpc ? aws_vpc.main[0].id : data.aws_vpc.existing[0].id
}

resource "aws_instance" "web" {
  ami           = data.aws_ami.ubuntu.id
  instance_type = var.instance_type

  tags = local.common_tags
}

Anti-patterns to Avoid

# ❌ Bad - unnecessary local for a simple reference
locals {
  instance_type = var.instance_type
}

# ✅ Good - use the variable directly
resource "aws_instance" "web" {
  instance_type = var.instance_type
}

Provider Configuration and Aliasing

Default Provider First

Always define a default provider configuration first, then aliases:

# Default provider
provider "aws" {
  region = "us-west-2"
}

# Aliased provider for another region
provider "aws" {
  alias  = "east"
  region = "us-east-1"
}

# Using the aliased provider
resource "aws_instance" "east_web" {
  provider = aws.east

  ami           = "ami-0c55b159cbfafe1f0"
  instance_type = "t2.micro"
}

Module Provider Configuration

For modules that use multiple providers, specify via the providers meta-argument:

module "vpc_replication" {
  source = "./modules/vpc"

  providers = {
    aws.primary   = aws
    aws.secondary = aws.east
  }
}

Dynamic Resource Creation

count vs for_each

Choose the appropriate meta-argument based on your use case:

Use for_each when:

• Resources need distinct argument values
• You want to reference resources by key instead of index
• Resources are based on a map or set
• Preference for_each over count

Use count when:

• Conditional resource creation (0 or 1)

Avoid count for:

• Simple numeric repetition (use for_each with a set or map instead)

for_each Examples

# Using for_each with a map
variable "instances" {
  type = map(object({
    instance_type = string
    ami           = string
  }))
  default = {
    web = {
      instance_type = "t2.micro"
      ami           = "ami-0c55b159cbfafe1f0"
    }
    api = {
      instance_type = "t2.small"
      ami           = "ami-0c55b159cbfafe1f0"
    }
  }
}

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

  ami           = each.value.ami
  instance_type = each.value.instance_type

  tags = {
    Name = each.key
  }
}

# Reference: aws_instance.servers["web"].id

# Using for_each with a set
variable "subnet_cidrs" {
  type    = set(string)
  default = ["10.0.1.0/24", "10.0.2.0/24", "10.0.3.0/24"]
}

resource "aws_subnet" "private" {
  for_each = var.subnet_cidrs

  vpc_id     = aws_vpc.main.id
  cidr_block = each.value

  tags = {
    Name = "private-${each.key}"
  }
}

count Examples

# Conditional resource creation
variable "enable_monitoring" {
  type    = bool
  default = false
}

resource "aws_cloudwatch_metric_alarm" "cpu" {
  count = var.enable_monitoring ? 1 : 0

  alarm_name          = "high-cpu-usage"
  comparison_operator = "GreaterThanThreshold"
  evaluation_periods  = 2
  metric_name         = "CPUUtilization"
  namespace           = "AWS/EC2"
  period              = 300
  statistic           = "Average"
  threshold           = 80
}

# Reference (when created): aws_cloudwatch_metric_alarm.cpu[0].id

Anti-pattern: count for Numeric Repetition

❌ Avoid this pattern - Using count for simple numeric repetition:

# BAD: Don't use count for numeric repetition
variable "instance_count" {
  type    = number
  default = 3
}

resource "aws_instance" "web" {
  count = var.instance_count

  ami           = "ami-0c55b159cbfafe1f0"
  instance_type = "t2.micro"

  tags = {
    Name = "web-${count.index}"
  }
}

✅ Better approach - Use for_each with a set instead:

# GOOD: Use for_each for multiple similar resources
variable "instance_names" {
  type    = set(string)
  default = ["web-1", "web-2", "web-3"]
}

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

  ami           = "ami-0c55b159cbfafe1f0"
  instance_type = "t2.micro"

  tags = {
    Name = each.key
  }
}

# Reference: aws_instance.web["web-1"].id

Why? Using for_each provides stable resource addresses that don't change when you add or remove instances from the middle of the list.

Version Control

.gitignore Configuration

Never commit to version control:

• State files (terraform.tfstate, terraform.tfstate.backup)
• Lock info files (.terraform.tfstate.lock.info)
• .terraform directory (provider plugins and modules)
• Saved plan files (*.tfplan, plan.out)
• .tfvars files containing sensitive data

Always commit:

• All .tf configuration files
• .terraform.lock.hcl (dependency lock file)
• .gitignore file
• README and documentation files

Workflow Standards

Version Pinning

Always pin versions explicitly to ensure reproducible deployments:

terraform {
  required_version = ">= 1.7"

  required_providers {
    aws = {
      source  = "hashicorp/aws"
      version = "5.34.0"  # Pin to exact version for stability
    }
    random = {
      source  = "hashicorp/random"
      version = "~> 3.6"  # Allow patch updates only
    }
  }
}

Version constraint operators:

• = 1.0.0 - Exact version only
• >= 1.0.0 - Greater than or equal to
• ~> 1.0 - Allow rightmost version component to increment (1.0, 1.1, but not 2.0)
• >= 1.0, < 2.0 - Version range

Module Repository Naming

Use the convention: terraform-<PROVIDER>-<NAME>

Examples:

• terraform-aws-vpc
• terraform-azurerm-virtual-network
• terraform-google-kubernetes-engine

Repository Strategy

Three common approaches:

1. Separate Module Repositories (Recommended)

• Each module in its own repository
• Independent versioning and release cycles
• Clear ownership boundaries

2. Logical Infrastructure Grouping

• Group related resources per repository
• Example: infra-networking, infra-compute, infra-databases
• Easier to manage related changes together

3. Monorepo

• All infrastructure code in one repository
• Centralized management
• Requires careful CI/CD targeting

Branching Strategy

Adopt GitHub Flow for simplicity:

1. Create short-lived feature branches from main
2. Submit pull requests for review
3. Enable speculative plans in HCP Terraform (automatic on PRs)
4. Merge to main after approval
5. Delete feature branches after merge

# Create feature branch
git checkout -b feature/add-monitoring

# Make changes and commit
git add .
git commit -m "Add CloudWatch monitoring for EC2 instances"

# Push and create PR
git push origin feature/add-monitoring

Multi-Environment Management

Workspace-Based Approach (Recommended with HCP Terraform)

Use separate workspaces for each environment:

# Development workspace: app-dev
# Staging workspace: app-staging
# Production workspace: app-prod

Terraform Cloud/HCP Terraform automatically manages state per workspace.

State and Secrets Management

Use HCP Terraform for state storage

State File Security

Never share full state files directly. State files contain sensitive information.

Alternatives for sharing data:

1. tfe_outputs data source (HCP Terraform):

data "tfe_outputs" "vpc" {
  organization = "my-org"
  workspace    = "networking-prod"
}

resource "aws_instance" "web" {
  subnet_id = data.tfe_outputs.vpc.values.private_subnet_ids[0]
}

2. Provider-specific data sources:

data "aws_vpc" "main" {
  tags = {
    Name = "main-vpc"
  }
}

resource "aws_subnet" "app" {
  vpc_id = data.aws_vpc.main.id
}

Secrets Management

Protect credentials through:

1. Dynamic Provider Credentials (HCP Terraform)

   • OIDC-based authentication
   • No long-lived credentials in configuration

2. HashiCorp Vault Integration:

data "vault_generic_secret" "database" {
  path = "secret/database"
}

resource "aws_db_instance" "main" {
  username = data.vault_generic_secret.database.data["username"]
  password = data.vault_generic_secret.database.data["password"]
}

3. Environment Variables:

variable "database_password" {
  description = "Database password (set via TF_VAR_database_password)"
  type        = string
  sensitive   = true
}

export TF_VAR_database_password="secure-password"
terraform apply

Testing and Policy

Module Testing

Write tests for modules using Terraform's native testing framework:

# tests/vpc.tftest.hcl
run "valid_vpc_cidr" {
  command = plan

  variables {
    vpc_cidr = "10.0.0.0/16"
  }

  assert {
    condition     = aws_vpc.main.cidr_block == "10.0.0.0/16"
    error_message = "VPC CIDR block did not match expected value"
  }
}

run "vpc_enables_dns" {
  command = plan

  assert {
    condition     = aws_vpc.main.enable_dns_hostnames == true
    error_message = "VPC should have DNS hostnames enabled"
  }
}

Run tests:

terraform test

Common Testing Scenarios

1. Validation Tests - Verify variable constraints
2. Plan Tests - Check expected resources will be created
3. Apply Tests - Test actual resource creation (in isolated environment)
4. Integration Tests - Verify resources work together correctly

Summary Checklist

Use this checklist for code reviews:

• Code formatted with terraform fmt
• Configuration validated with terraform validate
• Files organized according to standard structure
• All variables have type and description
• All outputs have descriptions
• Resource names use descriptive nouns with underscores
• Resources ordered with dependencies first
• Version constraints pinned explicitly
• Sensitive values marked with sensitive = true
• .gitignore excludes state files and secrets
• Tests written for modules
• Policy requirements satisfied
• Code reviewed by teammate

AWS-Specific Requirements

Important: The following requirements are specific to AWS resource deployments and should be applied to all AWS Terraform configurations for consistency, cost tracking, and governance.

Mandatory Resource Tagging

Severity: MUST | Requirement: AWS-TAG-001

All AWS resources that support tags MUST include at minimum an Application tag to identify the application or service the resource belongs to. This is critical for:

• Cost allocation and tracking
• Resource governance and management
• Security and compliance auditing
• Automated resource lifecycle management

Required Tag Implementation

Every taggable AWS resource MUST include:

tags = {
  Application = var.application_name  # MANDATORY
  # Additional tags as needed
  Environment = var.environment
  ManagedBy   = "Terraform"
  Owner       = var.owner_email
  CostCenter  = var.cost_center
}

Provider-Level Default Tags

Best Practice: Configure default tags at the provider level to ensure all resources automatically inherit mandatory tags:

# providers.tf
provider "aws" {
  region = var.aws_region

  default_tags {
    tags = {
      Application = var.application_name  # MANDATORY
      Environment = var.environment
      ManagedBy   = "Terraform"
      Workspace   = terraform.workspace
      Repository  = var.repository_url
    }
  }
}

Variable Definition for Application Tag

Always define the application name variable:

variable "application_name" {
  description = "Name of the application this infrastructure supports (REQUIRED for all resources)"
  type        = string

  validation {
    condition     = length(var.application_name) > 0
    error_message = "Application name is required and cannot be empty."
  }
}

Merging Tags with Local Values

For complex tagging scenarios, use local values to manage tag inheritance:

locals {
  # Mandatory tags that must be present on all resources
  mandatory_tags = {
    Application = var.application_name
  }

  # Common tags for all resources
  common_tags = merge(
    local.mandatory_tags,
    {
      Environment = var.environment
      ManagedBy   = "Terraform"
      CreatedDate = timestamp()
    }
  )

  # Merge with additional tags passed as variables
  all_tags = merge(
    local.common_tags,
    var.additional_tags
  )
}

# Usage in resources
resource "aws_instance" "example" {
  ami           = data.aws_ami.ubuntu.id
  instance_type = var.instance_type

  tags = merge(
    local.all_tags,
    {
      Name = "example-instance"
      Type = "compute"
    }
  )
}

Tag Validation and Compliance

Implement validation to ensure required tags are present:

variable "tags" {
  description = "Map of tags to apply to resources"
  type        = map(string)

  validation {
    condition     = contains(keys(var.tags), "Application")
    error_message = "The 'Application' tag is mandatory and must be included in the tags map."
  }
}

Resources That Don't Support Tags

Some AWS resources don't support tags directly. For these resources, document the application association in the resource name or description:

resource "aws_iam_policy_document" "example" {
  # IAM policy documents don't support tags
  # Include application name in the statement sid for traceability
  statement {
    sid = "${var.application_name}_S3Access"
    # ...
  }
}

resource "aws_iam_role" "example" {
  name = "${var.application_name}-role"  # Include app name in resource name

  tags = {
    Application = var.application_name  # IAM roles do support tags
  }
}

AWS Provider Configuration

Severity: SHOULD | Requirement: AWS-PROV-001

Provider Version Constraints

AWS provider configurations SHOULD follow these guidelines:

terraform {
  required_version = ">= 1.7"

  required_providers {
    aws = {
      source  = "hashicorp/aws"
      version = "~> 5.0"  # Use pessimistic constraint for stability
    }
  }
}

Multi-Region Configuration

For multi-region deployments, use provider aliases with clear naming:

# Primary region (default provider)
provider "aws" {
  region = var.primary_region

  default_tags {
    tags = {
      Application = var.application_name
      Region      = var.primary_region
    }
  }
}

# Secondary regions with aliases
provider "aws" {
  alias  = "us_east_1"
  region = "us-east-1"

  default_tags {
    tags = {
      Application = var.application_name
      Region      = "us-east-1"
    }
  }
}

provider "aws" {
  alias  = "eu_west_1"
  region = "eu-west-1"

  default_tags {
    tags = {
      Application = var.application_name
      Region      = "eu-west-1"
    }
  }
}

Assume Role Configuration

For cross-account deployments, configure role assumption:

provider "aws" {
  region = var.aws_region

  assume_role {
    role_arn     = var.assume_role_arn
    session_name = "${var.application_name}-terraform"
  }

  default_tags {
    tags = {
      Application = var.application_name
      Account     = var.target_account_id
    }
  }
}

AWS Resource Naming

Severity: SHOULD | Requirement: AWS-NAME-001

AWS resource names SHOULD follow these conventions for consistency and clarity:

Naming Pattern

Use the pattern: {application}-{environment}-{resource-type}-{identifier}

locals {
  name_prefix = "${var.application_name}-${var.environment}"
}

resource "aws_s3_bucket" "data" {
  bucket = "${local.name_prefix}-data-bucket"

  tags = merge(
    local.common_tags,
    {
      Name = "${local.name_prefix}-data-bucket"
    }
  )
}

resource "aws_instance" "web" {
  ami           = data.aws_ami.ubuntu.id
  instance_type = var.instance_type

  tags = merge(
    local.common_tags,
    {
      Name = "${local.name_prefix}-web-server"
    }
  )
}

resource "aws_rds_instance" "database" {
  identifier = "${local.name_prefix}-postgres-db"
  # ...

  tags = merge(
    local.common_tags,
    {
      Name = "${local.name_prefix}-postgres-db"
    }
  )
}

DNS-Compatible Names

For resources that require DNS-compatible names (S3 buckets, CloudFront distributions), ensure names:

• Use only lowercase letters, numbers, and hyphens
• Don't start or end with hyphens
• Are between 3 and 63 characters long

locals {
  # Ensure DNS-compatible naming
  dns_safe_name = lower(replace(var.application_name, "_", "-"))
  bucket_name   = "${local.dns_safe_name}-${var.environment}-${random_id.bucket.hex}"
}

resource "random_id" "bucket" {
  byte_length = 4
}

resource "aws_s3_bucket" "example" {
  bucket = local.bucket_name  # Guaranteed to be DNS-compatible

  tags = merge(
    local.common_tags,
    {
      Name = local.bucket_name
    }
  )
}

Resource Name vs Tag Name

Always include both the resource argument name and a Name tag for consistency:

resource "aws_security_group" "web" {
  name        = "${local.name_prefix}-web-sg"  # Resource argument
  description = "Security group for ${var.application_name} web servers"

  tags = merge(
    local.common_tags,
    {
      Name = "${local.name_prefix}-web-sg"  # Name tag matches resource name
    }
  )
}

AWS-Specific Testing Considerations

When testing AWS infrastructure:

1. Use Separate AWS Accounts for testing when possible
2. Include the Application tag in test configurations
3. Test tag inheritance from provider default_tags
4. Validate naming conventions meet AWS service requirements

# tests/aws_tags.tftest.hcl
run "verify_application_tag" {
  command = plan

  variables {
    application_name = "test-app"
  }

  assert {
    condition     = aws_instance.example.tags["Application"] == "test-app"
    error_message = "Application tag must be set on all resources"
  }
}

run "verify_name_pattern" {
  command = plan

  variables {
    application_name = "myapp"
    environment      = "dev"
  }

  assert {
    condition     = can(regex("^myapp-dev-", aws_instance.example.tags["Name"]))
    error_message = "Resource names must follow the {app}-{env}-{type} pattern"
  }
}

AWS Compliance Checklist

Add these items to your review checklist for AWS deployments:

• All taggable resources include the mandatory Application tag
• Provider configuration includes default_tags with Application tag
• Application name variable is defined with validation
• Resource names follow the {application}-{environment}-{resource-type} pattern
• DNS-required resource names are validated for compliance
• Multi-region deployments use clear provider aliases
• Cross-account access uses assume_role with proper session naming
• Both resource names and Name tags are set consistently
• Tag inheritance from provider default_tags is working correctly
• Test configurations include Application tag validation

Azure Verified Modules (AVM) Requirements

Important: The following requirements are mandatory for Azure Verified Modules but represent best practices that can enhance Terraform module development across any cloud provider.

Module Cross-Referencing

Severity: MUST | Requirement: TFFR1

When building Resource or Pattern modules, module owners MAY cross-reference other modules. However:

• Modules MUST be referenced using HashiCorp Terraform registry reference to a pinned version
  • Example: source = "Azure/xxx/azurerm" with version = "1.2.3"
• Modules MUST NOT use git references (e.g., git::https://xxx.yyy/xxx.git or github.com/xxx/yyy)
• Modules MUST NOT contain references to non-AVM modules

Broader Applicability: Always use registry references with pinned versions for any module to ensure reproducibility and version control.

Azure Provider Requirements

Severity: MUST | Requirement: TFFR3

For Azure Verified Modules, authors MUST only use the following Azure providers:

Requirements:

• Authors MAY select either Azurerm, Azapi, or both providers
• MUST use required_providers block to enforce provider versions
• SHOULD use pessimistic version constraint operator (~>)

Example:

terraform {
  required_providers {
    azurerm = {
      source  = "hashicorp/azurerm"
      version = "~> 4.0"
    }
    azapi = {
      source  = "Azure/azapi"
      version = "~> 2.0"
    }
  }
}

Broader Applicability: Always specify provider versions with appropriate constraints for any cloud provider to ensure compatibility.

AVM Code Style Standards

Lower snake_casing

Severity: MUST | Requirement: TFNFR4

MUST use lower snake_casing for:

• Locals
• Variables
• Outputs
• Resources (symbolic names)
• Modules (symbolic names)

Example: snake_casing_example

Resource & Data Source Ordering

Severity: SHOULD | Requirement: TFNFR6

• Resources that are depended on SHOULD come first
• Resources with dependencies SHOULD be defined close to each other

Count & for_each Usage

Severity: MUST | Requirement: TFNFR7

• Use count for conditional resource creation
• MUST use map(xxx) or set(xxx) as resource's for_each collection
• The map's key or set's element MUST be static literals

Good Example:

resource "azurerm_subnet" "pair" {
  for_each             = var.subnet_map  # map(string)
  name                 = "${each.value}-pair"
  resource_group_name  = azurerm_resource_group.example.name
  virtual_network_name = azurerm_virtual_network.example.name
  address_prefixes     = ["10.0.1.0/24"]
}

Broader Applicability: Using typed collections with for_each ensures predictable behavior across all providers.

Resource & Data Block Internal Ordering

Severity: SHOULD | Requirement: TFNFR8

Order within resource/data blocks:

1. Meta-arguments (top):

   • provider
   • count
   • for_each

2. Arguments/blocks (middle, alphabetical):

   • Required arguments
   • Optional arguments
   • Required nested blocks
   • Optional nested blocks

3. Meta-arguments (bottom):

   • depends_on
   • lifecycle (with sub-order: create_before_destroy, ignore_changes, prevent_destroy)

Separate sections with blank lines.

Module Block Ordering

Severity: SHOULD | Requirement: TFNFR9

Order within module blocks:

1. Top meta-arguments:

   • source
   • version
   • count
   • for_each

2. Arguments (alphabetical):

   • Required arguments
   • Optional arguments

3. Bottom meta-arguments:

   • depends_on
   • providers

Lifecycle ignore_changes Syntax

Severity: MUST | Requirement: TFNFR10

The ignore_changes attribute MUST NOT be enclosed in double quotes.

Good:

lifecycle {
  ignore_changes = [tags]
}

Bad:

lifecycle {
  ignore_changes = ["tags"]
}

Null Comparison for Conditional Creation

Severity: SHOULD | Requirement: TFNFR11

For parameters requiring conditional resource creation, wrap with object type to avoid "known after apply" issues during plan stage.

Recommended:

variable "security_group" {
  type = object({
    id = string
  })
  default = null
}

Broader Applicability: This pattern prevents plan-time issues across all providers when using conditional resources.

Dynamic Blocks for Optional Nested Objects

Severity: MUST | Requirement: TFNFR12

Nested blocks under conditions MUST use this pattern:

dynamic "identity" {
  for_each = <condition> ? [<some_item>] : []
  
  content {
    # block content
  }
}

Broader Applicability: This is the standard Terraform pattern for conditional nested blocks.

Default Values with coalesce/try

Severity: SHOULD | Requirement: TFNFR13

Good:

coalesce(var.new_network_security_group_name, "${var.subnet_name}-nsg")

Bad:

var.new_network_security_group_name == null ? "${var.subnet_name}-nsg" : var.new_network_security_group_name

Broader Applicability: coalesce() and try() functions provide cleaner, more readable default value handling.

Provider Declarations in Modules

Severity: MUST | Requirement: TFNFR27

• provider MUST NOT be declared in modules (except for configuration_aliases)
• provider blocks in modules MUST only use alias
• Provider configurations SHOULD be passed in by module users

Broader Applicability: This is a universal best practice for reusable Terraform modules.

AVM Variable Requirements

Not Allowed Variables

Severity: MUST | Requirement: TFNFR14

Module owners MUST NOT add variables like enabled or module_depends_on to control entire module operation. Boolean feature toggles for specific resources are acceptable.

Variable Definition Order

Severity: SHOULD | Requirement: TFNFR15

Variables SHOULD follow this order:

1. All required fields (alphabetical)
2. All optional fields (alphabetical)

Variable Naming Rules

Severity: SHOULD | Requirement: TFNFR16

• Follow HashiCorp's naming rules
• Feature switches SHOULD use positive statements: xxx_enabled instead of xxx_disabled

Variables with Descriptions

Severity: SHOULD | Requirement: TFNFR17

• description SHOULD precisely describe the parameter's purpose and expected data type
• Target audience is module users, not developers
• For object types, use HEREDOC format

Variable and output descriptions MAY span multiple lines using HEREDOC format with embedded markdown for examples.

Variables with Types

Severity: MUST | Requirement: TFNFR18

• type MUST be defined for every variable
• type SHOULD be as precise as possible
• any MAY only be used with adequate reasons
• Use bool instead of string/number for true/false values
• Use concrete object instead of map(any)

Broader Applicability: Precise typing prevents errors and improves documentation across all Terraform code.

Sensitive Data Variables

Severity: SHOULD | Requirement: TFNFR19

If a variable's type is object and contains sensitive fields, the entire variable SHOULD be sensitive = true, or extract sensitive fields into separate variables.

Non-Nullable Defaults for Collections

Severity: SHOULD | Requirement: TFNFR20

Nullable SHOULD be set to false for collection values (sets, maps, lists) when using them in loops. For scalar values, null may have semantic meaning.

Discourage Nullability by Default

Severity: MUST | Requirement: TFNFR21

nullable = true MUST be avoided unless there's a specific semantic need for null values.

Avoid sensitive = false

Severity: MUST | Requirement: TFNFR22

sensitive = false MUST be avoided (this is the default).

Sensitive Default Value Conditions

Severity: MUST | Requirement: TFNFR23

A default value MUST NOT be set for sensitive inputs (e.g., default passwords).

Handling Deprecated Variables

Severity: MUST | Requirement: TFNFR24

• Move deprecated variables to deprecated_variables.tf
• Annotate with DEPRECATED at the beginning of description
• Declare the replacement's name
• Clean up during major version releases

Broader Applicability: Clear deprecation management improves user experience for any module.

AVM Output Requirements

Additional Terraform Outputs

Severity: SHOULD | Requirement: TFFR2

Authors SHOULD NOT output entire resource objects as these may contain sensitive data and the schema can change with API or provider versions.

Best Practices:

• Output computed attributes of resources as discrete outputs (anti-corruption layer pattern)
• SHOULD NOT output values that are already inputs (except name)
• Use sensitive = true for sensitive attributes
• For resources deployed with for_each, output computed attributes in a map structure

Examples:

# Single resource computed attribute
output "foo" {
  description = "MyResource foo attribute"
  value       = azurerm_resource_myresource.foo
}

# for_each resources
output "childresource_foos" {
  description = "MyResource children's foo attributes"
  value = {
    for key, value in azurerm_resource_mychildresource : key => value.foo
  }
}

# Sensitive output
output "bar" {
  description = "MyResource bar attribute"
  value       = azurerm_resource_myresource.bar
  sensitive   = true
}

Broader Applicability: The anti-corruption layer pattern protects consumers from provider API changes.

Sensitive Data Outputs

Severity: MUST | Requirement: TFNFR29

Outputs containing confidential data MUST be declared with sensitive = true.

Handling Deprecated Outputs

Severity: MUST | Requirement: TFNFR30

• Move deprecated outputs to deprecated_outputs.tf
• Define new outputs in outputs.tf
• Clean up during major version releases

AVM Local Values Standards

locals.tf Organizati

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