Deploy an Azure Linux virtual machine by defining its network and compute resources with Terraform’s AzureRM provider, then store the configuration’s state in a private Azure Storage blob using Terraform’s azurerm backend. The backend is separate from the provider: each needs a valid way to access Azure. This guide uses SSH public-key authentication, reviews a saved plan before applying it, and covers state security, verification, and cleanup.
What you need to decide first
Before writing configuration, choose the Azure region, VM size, Linux image, and resource names. Decide whether the VM needs a public IP and which inbound traffic is genuinely required. A typical deployment includes a resource group, virtual network, subnet, network security group (NSG), public IP if needed, network interface, Linux VM, OS disk, SSH public key, and boot diagnostics.
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The example image in Microsoft’s Linux VM Terraform quickstart is Canonical Ubuntu Server 22.04. Confirm that the selected image reference is available in your target region when you deploy; image availability and version behavior can change. Azure Linux 4.0 is another option, but Microsoft’s Azure Linux 4.0 VM article, last updated August 19, 2026, marks it as preview for evaluation and testing, not as a production-ready choice.
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Prepare the Azure Storage backend
Create a dedicated storage account and private blob container for Terraform state before initializing the workload configuration. Record the state resource group, storage account name, container name, and blob key; the backend configuration needs these values. Keep state storage separate from the VM’s resources so that destroying the VM configuration does not also remove the state needed to manage it.
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Terraform’s AzureRM provider and its backend are distinct. The provider authenticates to create or update Azure resources; the backend separately needs permission and connectivity to read and write the state blob. For interactive local work, Microsoft documents Azure CLI authentication in its Terraform on Azure documentation. For non-interactive runs, choose an appropriate service principal or managed identity; Microsoft’s managed identity guidance discusses this route. Grant only the permissions needed for the workflow. A Contributor assignment at subscription scope is an example in that guidance, not a universal requirement.
A backend block can be configured in the Terraform root module, for example:
terraform {
backend "azurerm" {
resource_group_name = "<state-resource-group>"
storage_account_name = "<storage-account-name>"
container_name = "<private-container-name>"
key = "linux-vm.tfstate"
}
}Replace each angle-bracketed value with the actual backend detail. Follow Microsoft’s Azure Storage state guide for the authentication method and backend setup appropriate to your environment. Avoid putting a backend access key in a configuration file or committing it to source control. Microsoft recommends passing an access key through an environment variable rather than writing it to disk, and describes protecting a key with Key Vault.
Define the VM and its supporting resources
Declare Terraform and AzureRM provider requirements, configure the provider for the chosen subscription and region, and model the VM along with the network resources it depends on. Microsoft’s quickstart is a useful resource-structure example, but its AzureRM ~> 3.0 constraint is not a current version recommendation. Check the AzureRM Linux virtual machine resource reference and the Registry for a compatible current provider constraint before adopting it. Commit the project’s .terraform.lock.hcl file so that the selected provider versions are recorded for subsequent runs.
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Use an SSH public key for the standard login path: provide an administrator username and the public-key data to the Linux VM resource, and keep the matching private key under the operator’s control. The provider reference says password authentication defaults to disabled. It also warns that administrator login and password arguments are kept in raw Terraform state as plain text. Avoid password-based access unless a specific requirement calls for it, and treat any credentials in state as sensitive.
Build ingress into the NSG deliberately. If direct SSH access is required, allow TCP port 22 only from the intended source range rather than opening it to all addresses. If administration will use another approved access method, do not expose SSH publicly just because a public IP is present. The quickstart’s resource layout is a starting point, not a reason to permit broader inbound access than your use case requires.
Initialize, plan, and apply
- Save the configuration. Put the backend block, provider requirements, provider configuration, and VM resources in the Terraform root module. Keep credentials out of the files.
- Initialize the backend and providers. From that directory, run
terraform init. Terraform configures the Azure Storage backend and installs the selected provider. If you change backend settings later, initialize again and follow Terraform’s migration prompt carefully rather than assuming state has moved. - Review an exact saved plan. Run
terraform plan -out=tfplan. Inspect the proposed changes, including public IP and NSG ingress, before proceeding. Applying the saved plan ensures Terraform executes the plan you reviewed rather than generating a new one. - Apply the reviewed plan. Run
terraform apply tfplanand wait for Terraform to report completion. Protect the plan file as well as state: plans can also contain sensitive values. - Verify the deployment. Use Azure CLI or another Azure management interface to confirm that the VM and expected network resources exist in the intended resource group and region. Test access only through the route and source ranges you deliberately configured.
Protect state while collaborating
Remote state is useful for a shared workflow because team members and automation can use the same state rather than relying on one person’s local file. Microsoft states in its Azure Storage state guide that “Azure Storage blobs are automatically locked before any operation that writes state.” This prevents concurrent state writes from corrupting the state file. Microsoft also says blob data is encrypted at rest and describes Terraform retrieving state into memory rather than writing it to local disk in this backend pattern.
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Compared with local state, Azure Storage remote state supports shared access and locking, while local files are more exposed to accidental deletion and difficult team handoffs. Neither approach removes the need to protect sensitive state or preserve recovery access. Keep the backend’s administrative and recovery path separate from routine VM cleanup.
Review costs and destroy only when intended
Terraform’s VM creation flow does not show cost information in the way the Azure portal does. There is no reliable fixed deployment total: charges depend on region, VM size, disks, networking choices, and how long resources remain allocated. Check current Azure pricing for the configuration you plan to run.
When the VM is temporary, use Terraform’s destroy plan workflow and inspect it before deletion:
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terraform apply destroy.tfplanThis removes resources managed by the current state. Do not apply a destroy plan unless you intend to remove those resources, and do not remove the backend storage while it is still needed to manage or recover that state.
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