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Setting Up Azure Storage to Be Used for Terraform Remote State

Hey, Gurus! Welcome to the Setting Up Azure Storage to Be Used for Terraform Remote State lab. In this lab, we will cover 4 objectives: 1. First, we will log into the Azure portal and then configure the Cloud Shell to use bash. 1. Second, we will download and run a script to setup the lab environment. 1. Third, we will create an Azure Storage account with a storage container to use for remote storage of our Terraform state file. 1. And for our fourth objective, we will configure Terraform to use Azure Storage to remotely store our state. It is considered best practice to remotely store your state since it helps keep the file secure as it may contain sensitive data in plain text. It also allows for collaboration when managing and working with resources in a team environment.

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Path Info

Clock icon Advanced
Clock icon 30m
Clock icon Jun 17, 2022

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Table of Contents

  1. Challenge

    Set Up the Cloud Shell

    In the Portal

    1. Go to the portal and log in using your lab credentials.
    2. Click the Cloud Shell icon next to the search bar in the portal.
    3. Select Bash at the prompt.
    4. Click Show Advanced Settings.
    5. Set the Cloud Shell region to the same location as the resource group.
    6. Select the existing Resource Group, and select Use Existing for the Storage Account.
    7. In the File share section, choose Create new and enter "terraform".
    8. Click Attach Storage.
  2. Challenge

    Set Up the Lab Environment

    In the Cloud Shell

    1. Download the script at
    2. Add execute permissions to the script.
    3. Run the script.
    4. Move to the terraformguru directory.
    5. Initialize the working directory.
  3. Challenge

    Create the Azure Storage Account Configuration

    In the Cloud Shell

    1. Import the resource group found in the file.
    2. Look up and add the resource group name and location values to the resource block.
    3. Add the following resource blocks to the configuration and save the file:
      resource "azurerm_storage_account" "tfstate" {
        name                     = "tfstate${random_string.resource_code.result}"
        resource_group_name      =
        location                 =
        account_tier             = "Standard"
        account_replication_type = "LRS"
        allow_blob_public_access = true
        tags = {
          environment = "dev"
      resource "azurerm_storage_container" "tfstate" {
        name                  = "tfstate"
        storage_account_name  =
        container_access_type = "blob"
      # Outputs
      output "storage_account_name" {
         value =
      output "storage_container_name" {
        value =
    4. Check your formatting and validate your code.
    5. Deploy your resources and copy the values in the output.
  4. Challenge

    Deploy the Azure Storage Account with Terraform

    1. Once successfully deployed, create a file called and add the following code:

      terraform {
        backend "azurerm" {
          resource_group_name  = "<RESOURCE_GROUP_NAME>"
          storage_account_name = "<STORAGE_ACCOUNT_NAME>"
          container_name       = "CONTAINER_NAME"
          key                  = "terraform.tfstate"
    2. Replace the <RESOURCE_GROUP_NAME> and <STORAGE_ACCOUNT_NAME> placeholders with the values from the outputs of the storage account deployment.

    3. Save the file.

    4. Run the terraform init command to add your remote state backend configuration.

    5. Verify that your state is now being stored remotely.

    6. Once verified, delete your local state file.

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