diff --git a/terraform/azure-ghaf-infra.tf b/terraform/azure-ghaf-infra.tf
index facc229a..0724b253 100644
--- a/terraform/azure-ghaf-infra.tf
+++ b/terraform/azure-ghaf-infra.tf
@@ -1,47 +1,46 @@
 # SPDX-FileCopyrightText: 2023 Technology Innovation Institute (TII)
 #
 # SPDX-License-Identifier: Apache-2.0
-terraform {
-  required_providers {
-    azurerm = {
-      source = "hashicorp/azurerm"
-    }
-    sops = {
-      source = "carlpett/sops"
-    }
-  }
-}
 
-data "sops_file" "ghaf-infra" {
-  source_file = "secrets.yaml"
+# Resource group
+resource "azurerm_resource_group" "rg" {
+  name     = "ghaf-infra-terraform-dev"
+  location = var.resource_group_location
 }
-
-provider "azurerm" {
-  features {}
+# Create  VN
+resource "azurerm_virtual_network" "ghaf-infra-vnet" {
+  name                = "ghaf-infra-terraform-dev-vnet"
+  address_space       = ["10.3.0.0/24"]
+  location            = azurerm_resource_group.rg.location
+  resource_group_name = azurerm_resource_group.rg.name
 }
 
 
-# Backend for storing tfstate
-
-terraform {
-  backend "azurerm" {
-    resource_group_name  = "ghaf-infra-storage"
-    storage_account_name = "ghafinfrastatestorage"
-    container_name       = "ghaf-infra-tfstate-container"
-    key                  = "ghaf-infra.tfstate"
-  }
+# Create public IPs
+resource "azurerm_public_ip" "ghafhydra_terraform_public_ip" {
+  name                = "ghaf-infra-terraform-dev-ip"
+  location            = azurerm_resource_group.rg.location
+  resource_group_name = azurerm_resource_group.rg.name
+  allocation_method   = "Dynamic"
 }
 
 
-# Resource group
-
-variable "resource_group_location" {
-  type        = string
-  default     = "northeurope"
-  description = "Location of the resource group."
+# Create Network SG and rule
+resource "azurerm_network_security_group" "ghafhydra_terraform_nsg" {
+  name                = "ghaf-infra-terraform-dev-nsg"
+  location            = azurerm_resource_group.rg.location
+  resource_group_name = azurerm_resource_group.rg.name
+
+  security_rule {
+    name                       = "SSH"
+    priority                   = 300
+    direction                  = "Inbound"
+    access                     = "Allow"
+    protocol                   = "Tcp"
+    source_port_range          = "*"
+    destination_port_range     = "22"
+    source_address_prefix      = "*"
+    destination_address_prefix = "*"
+  }
 }
 
-resource "azurerm_resource_group" "rg" {
-  name     = "ghaf-infra-terraform-dev"
-  location = var.resource_group_location
-}
diff --git a/terraform/backend.tf b/terraform/backend.tf
new file mode 100644
index 00000000..ac85fecf
--- /dev/null
+++ b/terraform/backend.tf
@@ -0,0 +1,13 @@
+# SPDX-FileCopyrightText: 2023 Technology Innovation Institute (TII)
+#
+# SPDX-License-Identifier: Apache-2.0
+
+
+terraform {
+  backend "azurerm" {
+    resource_group_name  = "ghaf-infra-storage"
+    storage_account_name = "ghafinfrastatestorage"
+    container_name       = "ghaf-infra-tfstate-container"
+    key                  = "ghaf-infra.tfstate"
+  }
+}
diff --git a/terraform/data.tf b/terraform/data.tf
new file mode 100644
index 00000000..717db167
--- /dev/null
+++ b/terraform/data.tf
@@ -0,0 +1,7 @@
+# SPDX-FileCopyrightText: 2023 Technology Innovation Institute (TII)
+#
+# SPDX-License-Identifier: Apache-2.0
+
+data "sops_file" "ghaf-infra" {
+  source_file = "secrets.yaml"
+}
diff --git a/terraform/outputs.tf b/terraform/outputs.tf
new file mode 100644
index 00000000..5689a6ba
--- /dev/null
+++ b/terraform/outputs.tf
@@ -0,0 +1,11 @@
+# SPDX-FileCopyrightText: 2023 Technology Innovation Institute (TII)
+#
+# SPDX-License-Identifier: Apache-2.0
+
+output "resource_group_name" {
+  value = azurerm_resource_group.rg.name
+}
+
+output "resource_group_location" {
+  value = azurerm_resource_group.rg.location
+}
diff --git a/terraform/providers.tf b/terraform/providers.tf
new file mode 100644
index 00000000..6e9e9206
--- /dev/null
+++ b/terraform/providers.tf
@@ -0,0 +1,19 @@
+# SPDX-FileCopyrightText: 2023 Technology Innovation Institute (TII)
+#
+# SPDX-License-Identifier: Apache-2.0
+
+provider "azurerm" {
+  features {}
+}
+
+terraform {
+  required_providers {
+    azurerm = {
+      source  = "hashicorp/azurerm"
+    }
+    sops = {
+      source  = "carlpett/sops"
+    }
+  }
+}
+
diff --git a/terraform/variables.tf b/terraform/variables.tf
new file mode 100644
index 00000000..f60249f2
--- /dev/null
+++ b/terraform/variables.tf
@@ -0,0 +1,31 @@
+# SPDX-FileCopyrightText: 2023 Technology Innovation Institute (TII)
+#
+# SPDX-License-Identifier: Apache-2.0
+
+variable "resource_group_location" {
+  type        = string
+  default     = "swedencentral"
+  description = "Location of the resource group."
+}
+
+
+variable "resourcegroup" {
+  description = "The Azure Resource Group Name within your Subscription in which this resource will be created."
+   default     = "ghaf-infra-swe"
+}
+
+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 "location" {
+  description = "Location for resources"
+  default     = "eastus"
+}
+
+variable "subnet_address_prefix" {
+  description = "Address prefix for subnet"
+  default     = "10.0.1.0/24"
+}
\ No newline at end of file