Quickstart: Create a private endpoint by using Terraform

Article
03/18/2024

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

Note

The sample code for this article is located in the Azure Terraform GitHub repo.

See more articles and sample code showing how to use Terraform to manage Azure resources

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

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 = 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
}

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
}

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
    }
  }
}

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 = azapi_resource_action.ssh_public_key_gen.output.publicKey
}

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.

Get the Azure resource group name.

resource_group_name=$(terraform output -raw resource_group_name)

Get the SQL Server name.

sql_server=$(terraform output -raw sql_server)

Run az sql server show to display the details about the SQL Server private endpoint.

az sql server show \
    --resource-group $resource_group_name \
    --name $sql_server --query privateEndpointConnections \
    --output tsv

Get the Azure resource group name.

$resource_group_name=$(terraform output -raw resource_group_name)

Get the SQL Server name.

$sql_server=$(terraform output -raw sql_server_name)

Run Get-AzPrivateEndpoint to display the details about the SQL Server private endpoint.
```
$sql = @{
ResourceGroupName = $resource_group_name
}
Get-AzPrivateEndpoint @sql
```

Clean up resources

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

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.
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

Learn more about using Terraform in Azure

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Quickstart: Create a private endpoint by using Terraform

Prerequisites

Implement the Terraform code

Initialize Terraform

Create a Terraform execution plan

Apply a Terraform execution plan

Verify the results

Clean up resources

Troubleshoot Terraform on Azure

Next steps

Feedback

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