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+#  How to setup and AKS cluster via terraform
+
+:exclamation: This is partly outdated information please see our general [README.md#create-a-new-environment](../README.md#create-a-new-environment)
+
+This guide is only for those who operate the environment
+
+This how-to will guide you through the setup of a new AKS cluster via terraform. It is based on the terraform scripts in
+our [k8s-cluster-stack](https://github.com/catenax-ng/k8s-cluster-stack) repository.
+
+## Prerequisites
+
+Terraform is run by CLI on your local machine. We are not using any Pipelines for that. Therefor you need to install the
+terraform CLI for your operating system either by package manager for your OS, or by downloadable installer
+from [https://www.terraform.io/downloads](https://www.terraform.io/downloads). You can verify your installation by
+running a command like `terraform --version` from your terminal.
+
+We assign service principals to our AKS clusters, that we can later use as technical user for the connection from our
+core ArgoCD instance. If you do not already have a service principal, that you want to use, you can create one with the
+following commands:
+
+```shell
+# Logging in with your personal Azure account
+az login --tenant catenax.onmicrosoft.com
+# Creating a service principal, without assigning it to any resources/roles yet.
+az ad sp create-for-rbac --skip-assignment
+```
+
+You'll need the 'client id' and 'secret id' values later on.
+
+## Creating the AKS cluster
+
+The following steps show you how to...
+
+- initialize terraform
+- create a terraform plan
+- apply that plan to your Azure subscription
+
+It is assumed, that before running any terraform commands, you cloned
+the [cloud-infra](https://github.com/catenax-ng/cloud-infra)
+repository. You should then open a terminal session and navigate to the repository path.
+
+For the following instructions it is also assumed, that you already navigated to the AKS related terraform directory,
+which is at `/terraform/01_core_cluster/` in the repository.
+
+### Initialize terraform
+
+Before you can create or apply a terraform plan, you have to [initialize](https://www.terraform.io/cli/commands/init)
+the terraform working directory by running `terraform init`.
+
+This will initialize the necessary modules and download plugins for the used providers.
+
+### Creating and applying the terraform plan
+
+A [terraform plan](https://www.terraform.io/cli/commands/plan) is an execution plan that will give you a preview about
+the changes to your infrastructure. As input for the plan, you'll need to specify a set of variable values. Most of the
+variables are already set with sane defaults. A mandatory variable, that you need to specify is `environment_name`. To
+set this variable, create a file named after the environment you want to create with the ending '.tfvars' in the
+`01_core_cluster/environments/` directory. The value is specified as key-value-pair. Another useful variable that you
+can set is `k8s_vm_size`, which will specify the Azure specific VM type, that is used for the k8s nodes.
+
+An example tfvars file could look like the following:
+
+```hcl
+# Example terraform AKS environment variable specification
+# /terraform/01_core_cluster/core.tfvars
+environment_name = "core"
+k8s_vm_size      = "Standard_D8s_v4"
+```
+
+Beside these variables, that you can safely commit to the repository, you also need to specify the client id and client
+secret of the service principal, that should be assigned to the cluster. For this kind of variable, terraform provides
+a way to set specific environment variables, that have to be of the form
+`TF_VAR_<variable-name>`. You can set the service principal config like follows:
+
+```shell
+export TF_VAR_service_principal_client_id=<sp client id>
+export TF_VAR_service_principal_client_secret=<sp client secret>
+```
+
+With the variables specified in your tfvars and the service principal config set via environment variable, you can
+create the plan and apply it to Azure with the following command:
+
+```shell
+# replace <environment> with the actual name of the environment you chose
+terraform plan -var-file=environments/<environment>.tfvars -out <environment>.plan
+terraform apply <environment>.plan
+```
+
+## Verifying the AKS resources are created
+
+If you successfully applied the terraform plan, you will find a resource group with the naming pattern `cx-<envname>-rg`
+in your subscription in the [Azure portal](https://portal.azure.com/). Part of that resource group will be your newly
+created AKS cluster.
+
+You will also find a public IP with the naming pattern `cx-<envname>-public-ip` in a slightly different resource group,
+that Azure created automatically for the kubernetes nodes pool.