Day 36: Mastering Terraform Backend

Adrian Rubico

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Aug 19, 2025

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06:02 PM GMT+8

Day 36: Mastering Terraform Backend

When working with Terraform, state management plays a crucial role. By default, Terraform stores the state file locally, which can cause problems in collaboration, versioning, and reliability. A backend defines how and where Terraform stores state, enabling better collaboration and consistency across teams.

Problem

By default, Terraform stores the terraform.tfstate file on your local machine. This can quickly become a problem:

  • If your local file is lost or corrupted, your infrastructure tracking is gone.
  • Collaboration becomes difficult since teammates don’t have access to the same state.
  • It can lead to inconsistencies and errors when applying changes.

Solution

The solution is to use a remote backend. A backend defines where Terraform stores its state data files and how operations like plan and apply are executed.

Using a backend provides several benefits:

  • Centralized state management for teams.
  • Enhanced collaboration, as multiple engineers can work on the same infrastructure safely.
  • Security and reliability, since state files are stored in managed services like Azure Storage.

Task

Let's walk through setting up an Azure backend for Terraform.

Step1: Create Resources in Azure

  • In the Azure Portal, create a new Resource Group named tfstaterg.
  • Create a Storage Account named msstgtfstatedev01 (use the default settings).
Create Resource Group in Azure Portal.
Create Storage Account in Azure Portal (Part 1).
Create Storage Account in Azure Portal (Part 2).

Step 2: Create a Container in Azure Storage Account

After the storage account is successfully created, go to its Data Storage section and create a container named tfstate. This container will store the Terraform state file.

Create a Container in Azure Storage Account (Part 1).
Create a Container in Azure Storage Account (Part 2).

Step 3: Clone The Repository

Start by cloning the sample repository and navigate to the backend directory.

bash 
git clone https://github.com/git-adrianrubico/learn-terraform
cd learn-terraform/08-Backend

Step 4: Update the provider.tf

Inside the terraform block, add the backend configuration:;

hcl 
backend "azurerm" {
    resource_group_name  = "tfstaterg"
    storage_account_name = "msstgtfstatedev01"
    container_name       = "tfstate"
    key                  = "terraform.tfstate"
}

Step 5: Terraform Apply

Run the usual commands:

  • terraform init
Terraform Init with Backend config.
  • terraform plan
Terraform Plan with Backend config.
  • terraform apply
Terraform Apply with Backend config (Part 1).
Terraform Apply with Backend config (Part 2).

This tells Terraform to store the state file in the Azure Storage account rather than locally.

Step 6: Verify the State in Azure Storage

Go to the Azure Storage Account → Containers → tfstate.

  • You will see the terraform.tfstate file.
  • Notice the Lease Status and Lease State. This ensure that only one Terraform operation can modify the state at a time.
tfstate container view on Data Storage (Part 1).

Step 7: Quick View of the State File

You can also preview the Terraform state file directly in the Edit tab of the tfstate container. While it is not recommended to edit it manually, viewing it helps you understand how Terraform is tracking your infrastructure.

tfstate container view on Data Storage (Part 2).

Conclusion

We explored how to configure an Azure backend for Terraform and why it’s essential for collaboration and reliability. By centralizing your state file in Azure, you reduce risks, improve teamwork, and gain better control over your infrastructure.

With this, we’ve wrapped up the Terraform series. The last series of our #90DaysDevOpsChallenge will be about Getting Started with Azure DevOps.

TAGS:

#90DaysDevOpsChallenge InfrastructureasCode terraform tfcommands azure learn-terraform

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