Terraform to Create a Ubuntu 22.04 VM in VMware vSphere ESXi

Learn to use Terraform to create a Ubuntu 22.04 VM in VMware vSphere ESXi.


Below is a video explanation and demo.

Video Chapters

You can skip to the relevant chapters below:

  • 00:00 – Introduction
  • 01:24 – Run Terraform
  • 01:47 – Terraform 101 Course Announcement
  • 02:28 – Terraform Configuration Explained
  • 11:42 – See the Results
  • 14:22 – Wrap-Up


In this blog post, we will use Terraform to provision a VM in VMware vSphere by cloning a VMware template. If you recall, we created this template in a previous blog post using Packer. The post is called HashiCorp Packer to Build a Ubuntu 22.04 Image Template in VMware vSphere.


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The following is required to follow along:

  • Terraform (tested with Terraform v1.3.4)
  • Access to a vSphere instance (tested on vSphere v6.7)


Below is our setup diagram.

Setup Diagram
Setup Diagram


Let’s take a look at the most important configuration pieces needed.

Folder Structure

Below is the structure of the repo folder.

Folder Structure
Folder Structure

main.tf File

Let’s explore the main.tf file.

  1. The first section of the file defines the required vsphere provider along with the credentials needed to access vsphere. There is also a locals variable definition that gets used in the metadata.yaml and userdata.yaml templates.
terraform {
  required_providers {
    vsphere = {
      source = "hashicorp/vsphere"
      version = "2.2.0"
provider "vsphere" {
  user                 = var.vsphere_user
  password             = var.vsphere_password
  vsphere_server       = var.vsphere_vcenter
  allow_unverified_ssl = true
locals {
  templatevars = {
    name         = var.name,
    ipv4_address = var.ipv4_address,
    ipv4_gateway = var.ipv4_gateway,
    dns_server_1 = var.dns_server_list[0],
    dns_server_2 = var.dns_server_list[1],
    public_key = var.public_key,
    ssh_username = var.ssh_username
  1. The second section of the main.tf file has a bunch of data blocks to retrieve existing data in vsphere. You’ll see that we capture the following to use in generating the VM:
  • datacenter
  • datastore
  • cluster
  • network
  • template
data "vsphere_datacenter" "dc" {
  name = var.vsphere-datacenter
data "vsphere_datastore" "datastore" {
  name          = var.vm-datastore
  datacenter_id = data.vsphere_datacenter.dc.id
data "vsphere_compute_cluster" "cluster" {
  name          = var.vsphere-cluster
  datacenter_id = data.vsphere_datacenter.dc.id
data "vsphere_network" "network" {
  name          = var.vm-network
  datacenter_id = data.vsphere_datacenter.dc.id
data "vsphere_virtual_machine" "template" {
  name          = "/${var.vsphere-datacenter}/vm/${var.vsphere-template-folder}/${var.vm-template-name}"
  datacenter_id = data.vsphere_datacenter.dc.id
  1. In this third and last section, we use a vsphere_virtual_machine resource to build our VM. Notice how we use the info from the data blocks retrieved earlier. We also feed the local.templatevars variables into the metadata.yaml and the userdata.yaml templates. We will take a look at these templates next.
resource "vsphere_virtual_machine" "vm" {
  name             = var.name
  resource_pool_id = data.vsphere_compute_cluster.cluster.resource_pool_id
  datastore_id     = data.vsphere_datastore.datastore.id
  num_cpus             = var.cpu
  num_cores_per_socket = var.cores-per-socket
  memory               = var.ram
  guest_id             = var.vm-guest-id
  network_interface {
    network_id   = data.vsphere_network.network.id
    adapter_type = data.vsphere_virtual_machine.template.network_interface_types[0]
  disk {
    label            = "${var.name}-disk"
    thin_provisioned = data.vsphere_virtual_machine.template.disks.0.thin_provisioned
    eagerly_scrub    = data.vsphere_virtual_machine.template.disks.0.eagerly_scrub
    size             = var.disksize == "" ? data.vsphere_virtual_machine.template.disks.0.size : var.disksize 
  clone {
    template_uuid = data.vsphere_virtual_machine.template.id
  extra_config = {
    "guestinfo.metadata"          = base64encode(templatefile("${path.module}/templates/metadata.yaml", local.templatevars))
    "guestinfo.metadata.encoding" = "base64"
    "guestinfo.userdata"          = base64encode(templatefile("${path.module}/templates/userdata.yaml", local.templatevars))
    "guestinfo.userdata.encoding" = "base64"
  lifecycle {
    ignore_changes = [

metadata.yaml Template File

Cloud-init uses this file to define the instance we’re creating. We can configure the network interface, the hostname, the instance-id, the disks, and so on. Notice the ${variable_name} syntax. This is used to receive variables from the local.templatevars variable we fed into the template.

local-hostname: ${name}
instance-id: ubuntu-${name}
  version: 2
      dhcp4: false
        - ${ipv4_address}/24
      gateway4: ${ipv4_gateway}
        search: [home]
        addresses: [${dns_server_1}, ${dns_server_2}]
  mode: auto
  devices: ['/dev/sda2']
  ignore_growroot_disabled: true
  ipv4: true

userdata.yaml Template File

This file is used by cloud-init to configure users’ ssh names, keys, and so on. Furthermore, you can install packages here. We install the tree package to show this functionality.

  - name: ${ssh_username}
      - ssh-rsa ${public_key}
    sudo: ['ALL=(ALL) NOPASSWD:ALL']
    groups: sudo
    shell: /bin/bash
  - tree

output.tf File

In this file we display the output IP for our VM.

output "ip" {
  value = vsphere_virtual_machine.vm.guest_ip_addresses[0]

Variables Files

We split the variable assignment files into two files:

  1. terraform.tfvars (holds sensitive variables – not checked into git)
  2. vars.auto.tfvars (holds non-sensitive variables – checked into git)

terraform.tfvars File

You won’t find this file in the git repo because it contains sensitive information about my vSphere instance. I added it to .gitignore. I created an example file called terraform-example.tfvars. Please rename this file to terraform.tfvars and populate it with your values. Here it is below:

# vSphere Specific
vsphere_user     = "<your_vsphere_user>"
vsphere_password = "<your_vsphere_password>"
vsphere_vcenter  = "<your_vcenter_ip>"

vars.auto.tfvars File

This file assigns values to the different variables to build our VM. The variables are self-explanatory.

cpu                    = 4
cores-per-socket       = 1
ram                    = 4096
disksize               = 100 # in GB
vm-guest-id            = "ubuntu64Guest"
vsphere-unverified-ssl = "true"
vsphere-datacenter     = "Datacenter"
vsphere-cluster        = "Cluster01"
vm-datastore           = "Datastore1_SSD"
vm-network             = "VM Network"
vm-domain              = "home"
dns_server_list        = ["", ""]
name                   = "ubuntu22-04-test"
ipv4_address           = ""
ipv4_gateway           = ""
ipv4_netmask           = "24"
vm-template-name       = "Ubuntu-2204-Template-100GB-Thin"

variables.tf File

This is where you declare/define all the variables. You can find it in the GitLab repo.


In this blog post, we demonstrated how to use an existing vSphere template built by Packer to create a VM with Terraform. The key takeaway is that Infrastructure as Code works just as well in an on-premises environment as it does in the cloud. Keep building!


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