Hi @Ugresen Bhal,
Welcome to the Microsoft Q&A Platform! Thank you for asking your question here.
You can create a Kubernetes cluster on Azure Stack HCI (Azure Local) using several methods, such as ARM templates and the Azure portal. Although specific Terraform code may not be immediately available, you can consult the Azure documentation and community resources for assistance in setting up your cluster.
I would recommend this article-https://learn.microsoft.com/en-us/azure/aks/aksarc/create-clusters-terraform which describes how to create Kubernetes clusters in Azure Local using Terraform and the Azure Verified Module.
If you have any further queries, do let us know.