Provisioning EC2 Instances with Terraform Modules – Best Practices Guide
In this notes, we are going to learn how to organise terraform code using best practices like terraform modules. For the sake of simplicity we will reduce the code to the very basic example. An interesting side-effect is by modularizing our code, we can easily create multiple environments like dev and prod, which we will see later.

Github Repository
This guide full code is available in https://github.com/IaC-Toolbox/iac-toolbox-project/tree/main/v3-terraform-modules. Feel free to clone it and follow along!
Creating Terraform Modules
Modularizing Terraform means splitting our infrastructure code into reusable, logical components called modules. This improves maintainability, reusability, and clarity, especially as our infrastructure grows.
The best practices are separation of concerns, using inputs and outputs for modules. There are Root Module and Child Modules, where root module is the directory where the terraform commands are meant to run, and child modules are the ones that contain reusable code.
We will create 3 modules: network, ec2 and dns.
The overall folder structure should look like follows:
Module: network
resource "aws_vpc" "main" {
cidr_block = var.vpc_cidr
enable_dns_hostnames = true
enable_dns_support = true
}
resource "aws_subnet" "my_app" {
cidr_block = var.subnet_cidr
vpc_id = aws_vpc.main.id
availability_zone = var.availability_zone
}
resource "aws_internet_gateway" "my_app" {
vpc_id = aws_vpc.main.id
}
resource "aws_route_table" "my_app" {
vpc_id = aws_vpc.main.id
route {
cidr_block = "0.0.0.0/0"
gateway_id = aws_internet_gateway.my_app.id
}
}
resource "aws_route_table_association" "subnet-association" {
subnet_id = aws_subnet.my_app.id
route_table_id = aws_route_table.my_app.id
}Variables:
# variables.tf
variable "vpc_cidr" { type = string }
variable "subnet_cidr" { type = string }
variable "availability_zone" { type = string }Outputs:
output "vpc_id" { value = aws_vpc.main.id }
output "subnet_id" { value = aws_subnet.my_app.id }Module: ec2
resource "aws_security_group" "my_app" {
name = "Security Group for EC2 Instance"
vpc_id = var.vpc_id
ingress {
cidr_blocks = ["0.0.0.0/0"]
from_port = 80
to_port = 80
protocol = "tcp"
}
ingress {
cidr_blocks = ["0.0.0.0/0"]
from_port = 22
to_port = 22
protocol = "tcp"
}
egress {
from_port = 0
to_port = 0
protocol = "-1"
cidr_blocks = ["0.0.0.0/0"]
}
}
resource "aws_key_pair" "ssh-key" {
key_name = "ssh-key"
public_key = var.ssh_public_key
}
resource "aws_instance" "my_app" {
ami = var.instance_ami
instance_type = var.instance_type
availability_zone = var.availability_zone
security_groups = [aws_security_group.my_app.id]
associate_public_ip_address = true
subnet_id = var.subnet_id
key_name = aws_key_pair.ssh-key.key_name
}
resource "aws_eip" "my_app" {
instance = aws_instance.my_app.id
domain = "vpc"
}We will also add security group next to our EC2 module to allow SSH and HTTP access.
Variables:
# variables.tf
variable "instance_ami" { type = string }
variable "instance_type" { type = string }
variable "availability_zone" { type = string }
variable "subnet_id" { type = string }
variable "ssh_public_key" { type = string }
variable "vpc_id" { type = string }Outputs:
output "instance_id" { value = aws_instance.my_app.id }
output "public_ip" { value = aws_eip.my_app.public_ip }Using modules - route module
The root modules will reference the children modules and assign the variables.
# main.tf
provider "aws" {
region = "us-east-1"
shared_credentials_files = ["./.aws-credentials"]
profile = "terraform"
}
module "network" {
source = "./modules/network"
vpc_cidr = "10.0.0.0/16"
subnet_cidr = "10.0.1.0/24"
availability_zone = var.availability_zone
}
module "security_group" {
source = "./modules/security_group"
vpc_id = module.network.vpc_id
}
module "ec2" {
source = "./modules/ec2"
instance_ami = var.instance_ami
instance_type = var.instance_type
availability_zone = var.availability_zone
subnet_id = module.network.subnet_id
ssh_public_key = var.ssh_public_key
}And the outputs:
# outputs.tf
output "ec2_ip_address" {
value = module.ec2.public_ip
description = "The Elastic IP address allocated to the EC2 instance."
}Install modules and apply
The modules have to be installed, so we need to run terraform init first. After that run terraform apply --auto-approve to see that everything works ok. You should see something like this on terminal:
Apply complete! Resources: 3 added, 0 changed, 0 destroyed.
Outputs:
ec2_ip_address = "your-ip"Adding DNS module pointing to our instance and a simple HTTP server
Now to make things interesting, we will create a simple web server and two environments - dev and prod. A common requirement for web applications.
To accomplish that, we need to create:
- DNS module
- Update EC-2 Module to launch HTTP server
- Make dev and prod environments
DNS Module
Similarly, we will create the module called dns with 3 files in it - main, variables, outputs.
# main.tf
resource "aws_route53_record" "www" {
zone_id = var.main_zone_id
name = var.domain_name
type = "A"
ttl = 60
records = [var.dns_record]
}Variables:
# variables.tf
variable "main_zone_id" { type = string }
variable "domain_name" { type = string }
variable "dns_record" { type = string }# outputs.tf
output "dns_record" {
value = aws_route53_record.www.fqdn
description = "The FQDN of the www Route53 record"
}We will leave outputs.tf black for now.
Now in our route53.tf:
# route53.tf
resource "aws_route53_zone" "main" {
name = "viktorvasylkovskyi.com"
}
module "aws_route53_record" {
source = "./modules/dns"
domain_name = var.domain_name
main_zone_id = aws_route53_zone.main.zone_id
dns_record = module.ec2.public_ip
}Note, the domain_name is your domain name that you should own. Declare this variable in your variables.tf in the root module, and define it in terraform.tfvars.
Updating our EC-2 to start HTTP server
Now, let's update our ec2 module in main.tf. We are going to add a user_data that will instantiate a simple http server on the startup of the machine. Add the following:
# ec2.main.tf
resource "aws_instance" "app" {
... your instance previous code ...
user_data = <<-EOF
#!/bin/bash
sudo yum update -y || sudo apt-get update -y
sudo yum install -y python3 || sudo apt-get install -y python3
echo "<html><body><h1>Hello from Terraform EC2!</h1></body></html>" > index.html
nohup python3 -m http.server 80 &
EOF
}Adding outputs
Add outputs at the root module:
# outputs.tf
output "ec2_domain_name" {
value = module.aws_route53_record.dns_record
description = "The Elastic IP address allocated to the EC2 instance."
}Apply changes
Run terraform init and terraform apply --auto-approve and see your server working. You should be able to open browser at var.domain_name.
Destroying Infra
Remember, infra has costs. When you are done experimenting, you can destroy the infra like follows:
terraform destroy --auto-approveConclusion
By modularizing our Terraform code, we make our infrastructure more organized, reusable, and easier to maintain. This approach not only saves time as our projects grow, but also helps us avoid duplication and mistakes. With modules, scaling and evolving your infrastructure becomes a much smoother process. Next we are going to focus on security, and more importantly, the SSL termination for our web applications.
Appendix
(Note, the following is optional. The following guides assume you do not follow this in the code, for simplicity sake.)
Adding dev and production environments
The great thing about modules is that we can reuse them. Let's reuse them in two environments: prod and dev. We need to refactor our code such that we have new folder structure:
environments/
dev/
main.tf
terraform.tfvars
variables.tf
prod/
main.tf
terraform.tfvars
variables.tf
modules/Note, since our environments will be pretty much the same, the terraform.tfvars are going to drive the change of the environments.
Example of the terraform.tfvars in dev
availability_zone = "us-east-1a"
instance_ami = "ami-xxxx"
instance_type = "t2.micro"
domain_name = "dev.example.com"and in prod
availability_zone = "us-east-1b"
instance_ami = "ami-yyyy"
instance_type = "t3.medium"
domain_name = "prod.example.com"Now, you can apply.
Applying multiple environments
You can apply both environments using terraform apply. Just jump into the folder and run apply.
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