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DevOps9 min read18 July 2026

Terraform for Azure: State Locking, Directory Layout & DRY Modules

Master remote state locking with Azure Blob Storage, structuring environments with Terragrunt, and writing reusable HCL modules.

Written by NTMS DevOps Lead

### Best Practices for Azure Terraform Provisioning

1. **Always Use Remote State Storage**: Store `terraform.tfstate` in a secure Azure Blob Storage container with lease-locking enabled via Azure Storage Accounts. 2. **Use Managed Identities for Authentication**: Avoid hardcoding Azure client secrets in pipeline environment variables. Use OpenID Connect (OIDC) federated credentials with Azure DevOps or GitHub Actions. 3. **Structure Workspaces for Isolation**: Separate your state files per environment (`dev`, `test`, `prod`) to minimize blast radius.

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