HashiCorp at Microsoft Build 2025: New products to automate, secure, and scale on Azure

HashiCorp, an IBM company, is helping Azure users simplify and scale their infrastructure with new tools, deeper integrations, and key announcements unveiled at Microsoft Build 2025.

We’re excited to be at Microsoft Build 2025 to connect with developers, cloud architects, and platform engineers building modern, scalable applications on Azure. As organizations continue to scale cloud adoption, HashiCorp and Microsoft are working together to help teams manage infrastructure and security in a consistent, automated, and scalable way.

»Approaching 1 billion downloads of the Terraform AzureRM provider

Our first story from Build is a major milestone: The Terraform AzureRM provider is approaching 1 billion downloads! This achievement highlights the incredible momentum of the Azure ecosystem and the importance of infrastructure as code (IaC) in modern cloud operations. We’re proud to partner with Microsoft in supporting organizations as they automate provisioning across Azure services using Terraform. This week we’ll publish more about Microsoft Azure and HashiCorp’s Journey to 1 billion Terraform provider downloads.

»The Terraform MCP server, integrated with GitHub Copilot

Model Context Protocol (MCP) is a standard that connects natural language models with external APIs and tools, enabling accurate, validated, and context-aware interactions for more data-rich AI assistance. You can configure clients, such as VS Code, to send requests through an MCP server so that the model can provide answers to prompts that it may not have been trained on.

Today, we’re announcing the beta launch of our official Terraform MCP server. This new project is a local implementation of MCP that’s purpose-built for Terraform workflows. This initial release allows an AI agent to query the Terraform Registry for artifact information and request recommendations.

With MCP, developers can describe what they want to build and receive module recommendations, provider documentation summaries, examples of resource configuration, and more, turning guesswork and context-switching into a guided, in-editor conversation that accelerates delivery.

»GitHub Copilot integration

This week at Build, HashiCorp and GitHub are announcing direct integration between GitHub Copilot and our new Terraform MCP server, enabling developers to interact with Terraform workflows and GitHub Copilot through natural language — right from their IDE. By connecting Copilot to the MCP server, users can ask questions like “How do I configure an Azure Key Vault with Terraform?” and receive validated, context-aware responses powered by live data from the Terraform Registry.

This direct connection reduces reliance on outdated LLM training data or general web search, making infrastructure provisioning more accurate and accessible. As AI-driven development continues to grow, MCP bridges the gap between human intent and IaC best practices, supporting secure, compliant, and efficient cloud deployments.

The image below shows a developer using GitHub Copilot to retrieve required parameters for the azurerm_kubernetes_cluster resource. Copilot accesses the Terraform MCP server to return precise, up-to-date documentation — right within the development environment.

To learn more, check out the Terraform MCP server user guide and watch the full demo below to see how GitHub Copilot connects to the Terraform MCP server to deliver accurate, real-time infrastructure guidance directly in your editor.

»Deeper integration with HashiCorp Vault and Azure Arc

We’re expanding our collaboration with Microsoft through HashiCorp Vault support for Azure Arc — a new integration that was announced earlier today at Microsoft Build. This integration makes it easier to run HashiCorp tools consistently across hybrid and multi-cloud environments, with streamlined procurement and deployment options for enterprise customers.

HashiCorp Vault Enterprise for Azure Arc deployments enables organizations to centrally manage secrets and protect sensitive data across hybrid and multi-cloud environments using identity-based security principles.

As enterprises adopt hybrid architectures, traditional perimeter-based security models are no longer sufficient. Vault helps address this challenge by authenticating users and applications, authorizing access based on identity and fine-grained policy, encrypting data at rest and in transit, and injecting dynamic, short-lived credentials. Vault also automates the lifecycle of secrets, certificates, and encryption keys — reducing operational risk and improving compliance.

By integrating with Azure Arc, Vault Enterprise can be deployed and managed alongside other Azure Arc-enabled services — whether workloads run on-premises, in Azure, or in other cloud environments. This allows organizations to consistently enforce zero trust security practices while benefiting from centralized governance and compliance visibility through the Azure control plane.

»Terraform and Azure integrations

HashiCorp and Azure have launched several new capabilities that simplify infrastructure modernization on Azure:

Public preview of Terraform Export from the Azure Portal: Automatically generate Terraform configuration from existing Azure resources to accelerate onboarding to IaC.

AzAPI provider: Microsoft maintains another Terraform provider for Azure services: AzAPI, which recently reached version 2.0. AzAPI is a lightweight wrapper around Azure APIs, enabling direct and early access to the latest Azure features. Check out our joint blog comparing AzureRM and AzAPI Terraform providers, offering insights on when to use each for optimal Azure infrastructure management.

Terraform migrate: Convert imperative Azure CLI or ARM templates into Terraform code to ease your migration journey.

Public beta of Terraform Stacks: Simplify provisioning and managing Azure resources at scale, reducing the time and overhead of managing infrastructure.

Ephemeral values: Enable secure handling of secrets with the ability to fetch secrets directly from Azure Key Vault.

»Watch our latest videos and Microsoft Reactor session

We’ve teamed up with Microsoft to produce content highlighting best practices and demos for using Terraform and Vault on Azure. Be sure to check out our session with the Microsoft Reactor team and our Snapshot demo series to see live demos, tips, and real-world use cases.

• Microsoft Reactor: Scaling Terraform in regulated industries
• Snapshot demo: Dynamic secrets with the Azure provider
• Snapshot demo: Automating secure and scalable AI deployments on Microsoft Azure

»Connect with us

If you’re attending Microsoft Build, be sure to stop by our sessions and visit the HashiCorp booth. Our experts will be on hand to talk about our latest integrations across the Azure ecosystem. HashiCorp will also participate in some breakout sessions at Build. Sign up for the sessions below:

Accelerate your Azure platform journey with Azure Verified Modules | Session Code: BRK196 | Monday May 19, 5:30 p.m. EST

The Agent Awakens: Collaborative Development with GitHub Copilot | Session Code: BRK113 | Monday May 19, 6:00 p.m. EST

Reimagining Software Development and DevOps with Agentic AI | Session Code: BRK100 | Monday, May 19, 2:45 p.m. EST

You can also register for the Seattle HashiCorp Users Group In-Person Meetup on May 22nd, 4:00 p.m. PST, at the Microsoft Campus in Redmond, WA.