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Infrastructure as Code FAQ: Top Questions

7. How to manage secrets securely in Terraform and IaC workflows?

Managing secrets securely is a critical aspect of using Infrastructure as Code (IaC). Terraform configurations often require sensitive data such as API keys, database passwords, and cloud credentials. Exposing these secrets can lead to security breaches and compliance violations.

πŸ—ΊοΈ Step-by-Step Instructions:

  1. Use environment variables or encrypted secret managers like HashiCorp Vault, AWS Secrets Manager, or SSM Parameter Store.
  2. Avoid hardcoding secrets directly into .tf files or variable definitions.
  3. Use terraform.tfvars or encrypted versions of it and always include *.tfvars and .terraform in .gitignore.
  4. Use remote state backends with encryption (e.g., AWS S3 with SSE enabled).
  5. Apply role-based access controls and audit trails in CI/CD pipelines.

πŸ“₯ Example Input:

# variables.tf
variable "db_password" {
  description = "The database password"
  type        = string
  sensitive   = true
}

# terraform.tfvars (should NOT be checked into version control)
db_password = "supersecret123"

# Or use environment variables in shell
export TF_VAR_db_password="supersecret123"

πŸ† Expected Output:

Terraform injects the secret at runtime without exposing it in logs or plan outputs.

πŸ“˜ Detailed Explanation:

  • sensitive = true: Marks variables so Terraform masks them in CLI output.
  • Environment Variables: Preferred in ephemeral pipelines and local testing.
  • Vault Providers: Integrate with Vault using the Vault provider to dynamically inject secrets.
  • State Security: Use encrypted remote backends and restrict access to state files.

πŸ› οΈ Use Cases:

  • Managing cloud credentials for deploying AWS/GCP/Azure resources securely.
  • Injecting API tokens into Terraform at deploy time via CI/CD.
  • Using Vault to rotate secrets dynamically during infrastructure lifecycle.
  • Preventing accidental exposure of secrets through logs or git commits.