Azure VMSS deployed via Terraform with cloud init

azure-vmss-with-cloud-init.tf

resource "azurerm_linux_virtual_machine_scale_set" "deployment" {
  name                = "buildagent-vmss"
  resource_group_name = azurerm_resource_group.deployment.name
  location            = azurerm_resource_group.deployment.location
  sku                 = "Standard_F8s_v2"
  instances           = var.numberOfWorkerNodes # number of instances

  overprovision          = false
  single_placement_group = false

  admin_username      = "adminuser"
  admin_password      = azurerm_key_vault_secret.vmsecret.value

  disable_password_authentication = false

  custom_data = base64encode(data.local_file.cloudinit.content)

  source_image_reference {
    publisher = "canonical"
    offer     = "0001-com-ubuntu-server-focal"
    sku       = "20_04-lts"
    version   = "latest"
  }

  os_disk {
    storage_account_type = "Standard_LRS"
    caching              = "ReadOnly"

    diff_disk_settings {
      option = "Local"
    }
  }

  network_interface {
    name    = "${local.prefix}-vmss-nic"
    primary = true

    ip_configuration {
      name      = "${local.prefix}-vmss-ipconfig"
      primary   = true
      subnet_id = azurerm_subnet.deployment.id
    }
  }

  boot_diagnostics {
    storage_account_uri = null
  }
}

# Data template Bash bootstrapping file
data "local_file" "cloudinit" {
    filename = "${path.module}/cloudinit.conf"
}