How to do it…

In order to use Terraform in Azure Cloud Shell, perform the following steps:

1. In the Azure portal, open Azure Cloud Shell by clicking the Cloud Shell button in the top menu, as shown in the following screenshot:

2. Inside the Cloud Shell panel, in the top menu, in the dropdown, choose Bash mode:

3. In the Cloud Shell terminal, create a new folder, demotf, inside the default clouddrive folder by executing the following command:

mkdir clouddrive/demotf

Inside this new folder, enter the cd clouddrive/demotf command.

4. To write a Terraform configuration inside an integrated Visual Studio Code instance, execute the code command.

5. In the editor, in the opened blank page, write the Terraform configuration with the following sample code:

terraform {
  required_version = ">= 0.12"
}

provider "azurerm" {
  features {}
}

resource "azurerm_resource_group" "rg-app" {
  name     = "RG-TEST-DEMO"
  location...