Quickstart: Create a private endpoint by using Terraform

In this quickstart, you use Terraform to create a private endpoint. The private endpoint connects to an Azure SQL Database. The private endpoint is associated with a virtual network and a private Domain Name System (DNS) zone. The private DNS zone resolves the private endpoint IP address. The virtual network contains a virtual machine that you use to test the connection of the private endpoint to the instance of the SQL Database.

The script generates a random password for the SQL server and a random SSH key for the virtual machine. The names of the created resources are output when the script is run.

Terraform enables the definition, preview, and deployment of cloud infrastructure. Using Terraform, you create configuration files using HCL syntax. The HCL syntax allows you to specify the cloud provider - such as Azure - and the elements that make up your cloud infrastructure. After you create your configuration files, you create an execution plan that allows you to preview your infrastructure changes before they're deployed. Once you verify the changes, you apply the execution plan to deploy the infrastructure.

Prerequisites

• You need an Azure account with an active subscription. Create an account for free.

• Install and configure Terraform.

Implement the Terraform code

1. Create a directory in which to test and run the sample Terraform code and make it the current directory.

2. Create a file named main.tf and insert the following code:

   resource "random_pet" "prefix" {
     prefix = var.resource_group_name_prefix
     length = 1
   }
   
   # Resource Group
   resource "azurerm_resource_group" "rg" {
     location = var.resource_group_location
     name     = "${random_pet.prefix.id}-rg"
   }
   
   # Virtual Network
   resource "azurerm_virtual_network" "my_terraform_network" {
     name                = "${random_pet.prefix.id}-vnet"
     address_space       = ["10.0.0.0/16"]
     location            = azurerm_resource_group.rg.location
     resource_group_name = azurerm_resource_group.rg.name
   }
   
   # Subnet 1
   resource "azurerm_subnet" "my_terraform_subnet_1" {
     name                 = "subnet-1"
     resource_group_name  = azurerm_resource_group.rg.name
     virtual_network_name = azurerm_virtual_network.my_terraform_network.name
     address_prefixes     = ["10.0.0.0/24"]
   }
   
   # Public IP address for NAT gateway
   resource "azurerm_public_ip" "my_public_ip" {
     name                = "public-ip-nat"
     location            = azurerm_resource_group.rg.location
     resource_group_name = azurerm_resource_group.rg.name
     allocation_method   = "Static"
     sku                 = "Standard"
   }
   
   # NAT Gateway
   resource "azurerm_nat_gateway" "my_nat_gateway" {
     name                = "nat-gateway"
     location            = azurerm_resource_group.rg.location
     resource_group_name = azurerm_resource_group.rg.name
   }
   
   # Associate NAT Gateway with Public IP
   resource "azurerm_nat_gateway_public_ip_association" "example" {
     nat_gateway_id       = azurerm_nat_gateway.my_nat_gateway.id
     public_ip_address_id = azurerm_public_ip.my_public_ip.id
   }
   
   # Associate NAT Gateway with Subnet
   resource "azurerm_subnet_nat_gateway_association" "example" {
     subnet_id      = azurerm_subnet.my_terraform_subnet_1.id
     nat_gateway_id = azurerm_nat_gateway.my_nat_gateway.id
   }
   
   # Create public IP for virtual machine
   resource "azurerm_public_ip" "my_public_ip_vm" {
     name                = "public-ip-vm"
     location            = azurerm_resource_group.rg.location
     resource_group_name = azurerm_resource_group.rg.name
     allocation_method   = "Static"
     sku                 = "Standard"
   }
   
   # Create Network Security Group and rule
   resource "azurerm_network_security_group" "my_terraform_nsg" {
     name                = "nsg-1"
     location            = azurerm_resource_group.rg.location
     resource_group_name = azurerm_resource_group.rg.name
   
     security_rule {
       name                       = "SSH"
       priority                   = 1001
       direction                  = "Inbound"
       access                     = "Allow"
       protocol                   = "Tcp"
       source_port_range          = "*"
       destination_port_range     = "22"
       source_address_prefix      = "*"
       destination_address_prefix = "*"
     }
   }
   
   # Create network interface
   resource "azurerm_network_interface" "my_terraform_nic" {
     name                = "nic-1"
     location            = azurerm_resource_group.rg.location
     resource_group_name = azurerm_resource_group.rg.name
   
     ip_configuration {
       name                          = "my_nic_configuration"
       subnet_id                     = azurerm_subnet.my_terraform_subnet_1.id
       private_ip_address_allocation = "Dynamic"
       public_ip_address_id          = azurerm_public_ip.my_public_ip_vm.id
     }
   }
   
   # Connect the security group to the network interface
   resource "azurerm_network_interface_security_group_association" "example" {
     network_interface_id      = azurerm_network_interface.my_terraform_nic.id
     network_security_group_id = azurerm_network_security_group.my_terraform_nsg.id
   }
   
   # Generate random text for a unique storage account name
   resource "random_id" "random_id" {
     keepers = {
       # Generate a new ID only when a new resource group is defined
       resource_group = azurerm_resource_group.rg.name
     }
   
     byte_length = 8
   }
   
   # Create storage account for boot diagnostics
   resource "azurerm_storage_account" "my_storage_account" {
     name                     = "diag${random_id.random_id.hex}"
     location                 = azurerm_resource_group.rg.location
     resource_group_name      = azurerm_resource_group.rg.name
     account_tier             = "Standard"
     account_replication_type = "LRS"
   }
   
   # Create virtual machine
   resource "azurerm_linux_virtual_machine" "my_terraform_vm" {
     name                  = "vm-1"
     location              = azurerm_resource_group.rg.location
     resource_group_name   = azurerm_resource_group.rg.name
     network_interface_ids = [azurerm_network_interface.my_terraform_nic.id]
     size                  = "Standard_DS1_v2"
   
     os_disk {
       name                 = "myOsDisk"
       caching              = "ReadWrite"
       storage_account_type = "Premium_LRS"
     }
   
     source_image_reference {
       publisher = "Canonical"
       offer     = "0001-com-ubuntu-server-jammy"
       sku       = "22_04-lts-gen2"
       version   = "latest"
     }
   
     computer_name  = "hostname"
     admin_username = var.username
   
     admin_ssh_key {
       username   = var.username
       public_key = jsondecode(azapi_resource_action.ssh_public_key_gen.output).publicKey
     }
   
     boot_diagnostics {
       storage_account_uri = azurerm_storage_account.my_storage_account.primary_blob_endpoint
     }
   }
   
   # Create SQL server name
   resource "random_pet" "azurerm_mssql_server_name" {
     prefix = "sql"
   }
   
   # Random password for SQL server
   resource "random_password" "admin_password" {
     count       = var.admin_password == null ? 1 : 0
     length      = 20
     special     = true
     min_numeric = 1
     min_upper   = 1
     min_lower   = 1
     min_special = 1
   }
   
   locals {
     admin_password = try(random_password.admin_password[0].result, var.admin_password)
   }
   
   # Create SQL server
   resource "azurerm_mssql_server" "server" {
     name                         = random_pet.azurerm_mssql_server_name.id
     resource_group_name          = azurerm_resource_group.rg.name
     location                     = azurerm_resource_group.rg.location
     administrator_login          = var.admin_username
     administrator_login_password = local.admin_password
     version                      = "12.0"
   }
   
   # Create SQL database
   resource "azurerm_mssql_database" "db" {
     name      = var.sql_db_name
     server_id = azurerm_mssql_server.server.id
   }
   
   # Create private endpoint for SQL server
   resource "azurerm_private_endpoint" "my_terraform_endpoint" {
     name                = "private-endpoint-sql"
     location            = azurerm_resource_group.rg.location
     resource_group_name = azurerm_resource_group.rg.name
     subnet_id           = azurerm_subnet.my_terraform_subnet_1.id
   
     private_service_connection {
       name                           = "private-serviceconnection"
       private_connection_resource_id = azurerm_mssql_server.server.id
       subresource_names              = ["sqlServer"]
       is_manual_connection           = false
     }
   
     private_dns_zone_group {
       name                 = "dns-zone-group"
       private_dns_zone_ids = [azurerm_private_dns_zone.my_terraform_dns_zone.id]
     }
   }
   
   # Create private DNS zone
   resource "azurerm_private_dns_zone" "my_terraform_dns_zone" {
     name                = "privatelink.database.windows.net"
     resource_group_name = azurerm_resource_group.rg.name
   }
   
   # Create virtual network link
   resource "azurerm_private_dns_zone_virtual_network_link" "my_terraform_vnet_link" {
     name                  = "vnet-link"
     resource_group_name   = azurerm_resource_group.rg.name
     private_dns_zone_name = azurerm_private_dns_zone.my_terraform_dns_zone.name
     virtual_network_id    = azurerm_virtual_network.my_terraform_network.id
   }
   

3. Create a file named outputs.tf and insert the following code:

   output "resource_group_name" {
     description = "The name of the created resource group."
     value       = azurerm_resource_group.rg.name
   }
   
   output "virtual_network_name" {
     description = "The name of the created virtual network."
     value       = azurerm_virtual_network.my_terraform_network.name
   }
   
   output "subnet_name_1" {
     description = "The name of the created subnet 1."
     value       = azurerm_subnet.my_terraform_subnet_1.name
   }
   
   output "nat_gateway_name" {
     description = "The name of the created NAT gateway."
     value       = azurerm_nat_gateway.my_nat_gateway.name
   }
   
   output "sql_server_name" {
     value = azurerm_mssql_server.server.name
   }
   
   output "admin_password" {
     sensitive = true
     value     = local.admin_password
   }
   

4. Create a file named provider.tf and insert the following code:

   terraform {
     required_providers {
       azapi = {
         source  = "azure/azapi"
         version = "~>1.5"
       }
       azurerm = {
         source  = "hashicorp/azurerm"
         version = "~>3.0"
       }
       random = {
         source  = "hashicorp/random"
         version = "~>3.0"
       }
     }
   }
   
   provider "azurerm" {
     features {
       resource_group {
         prevent_deletion_if_contains_resources = false
       }
     }
   }
   

5. Create a file named ssh.tf and insert the following code:

   resource "random_pet" "ssh_key_name" {
     prefix    = "ssh"
     separator = ""
   }
   
   resource "azapi_resource_action" "ssh_public_key_gen" {
     type        = "Microsoft.Compute/sshPublicKeys@2022-11-01"
     resource_id = azapi_resource.ssh_public_key.id
     action      = "generateKeyPair"
     method      = "POST"
   
     response_export_values = ["publicKey", "privateKey"]
   }
   
   resource "azapi_resource" "ssh_public_key" {
     type      = "Microsoft.Compute/sshPublicKeys@2022-11-01"
     name      = random_pet.ssh_key_name.id
     location  = azurerm_resource_group.rg.location
     parent_id = azurerm_resource_group.rg.id
   }
   
   output "key_data" {
     value = jsondecode(azapi_resource_action.ssh_public_key_gen.output).publicKey
   }
   

6. Create a file named variables.tf and insert the following code:

   variable "resource_group_location" {
     type        = string
     default     = "eastus"
     description = "Location of the resource group."
   }
   
   variable "resource_group_name_prefix" {
     type        = string
     default     = "rg"
     description = "Prefix of the resource group name that's combined with a random ID so name is unique in your Azure subscription."
   }
   
   variable "username" {
     type        = string
     description = "The username for the local account that will be created on the new VM."
     default     = "azureuser"
   }
   
   variable "sql_db_name" {
     type        = string
     description = "The name of the SQL Database."
     default     = "SampleDB"
   }
   
   variable "admin_username" {
     type        = string
     description = "The administrator username of the SQL logical server."
     default     = "azureadmin"
   }
   
   variable "admin_password" {
     type        = string
     description = "The administrator password of the SQL logical server."
     sensitive   = true
     default     = null
   }
   

Initialize Terraform

Run terraform init to initialize the Terraform deployment. This command downloads the Azure provider required to manage your Azure resources.

terraform init -upgrade

Key points:

• The -upgrade parameter upgrades the necessary provider plugins to the newest version that complies with the configuration's version constraints.

Create a Terraform execution plan

Run terraform plan to create an execution plan.

terraform plan -out main.tfplan

Key points:

• The terraform plan command creates an execution plan, but doesn't execute it. Instead, it determines what actions are necessary to create the configuration specified in your configuration files. This pattern allows you to verify whether the execution plan matches your expectations before making any changes to actual resources.
• The optional -out parameter allows you to specify an output file for the plan. Using the -out parameter ensures that the plan you reviewed is exactly what is applied.

Apply a Terraform execution plan

Run terraform apply to apply the execution plan to your cloud infrastructure.

terraform apply main.tfplan

Key points:

• The example terraform apply command assumes you previously ran terraform plan -out main.tfplan.
• If you specified a different filename for the -out parameter, use that same filename in the call to terraform apply.
• If you didn't use the -out parameter, call terraform apply without any parameters.

Verify the results

Clean up resources

When you no longer need the resources created via Terraform, do the following steps:

1. Run terraform plan and specify the destroy flag.

   terraform plan -destroy -out main.destroy.tfplan
   

   Key points:

   • The terraform plan command creates an execution plan, but doesn't execute it. Instead, it determines what actions are necessary to create the configuration specified in your configuration files. This pattern allows you to verify whether the execution plan matches your expectations before making any changes to actual resources.
   • The optional -out parameter allows you to specify an output file for the plan. Using the -out parameter ensures that the plan you reviewed is exactly what is applied.

2. Run terraform apply to apply the execution plan.

   terraform apply main.destroy.tfplan
   

Troubleshoot Terraform on Azure

Troubleshoot common problems when using Terraform on Azure.

Next steps