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If your instances are created by Terraform itself, sure, you can use for_each with a data source to define DNS records dynamically. But if the instances are created dynamically outside of Terraform—such as through an auto-scaling group—then Terraform's static plan model becomes a problem.

Terraform data sources can read existing infrastructure, but they don't automatically trigger new resource creation based on real-time changes. That means your DNS records won't update unless you manually run terraform apply again, and they won’t be part of a single apply cycle. In contrast, a real programming language could handle this as a continuous process, responding to infrastructure changes in real-time.

So yes, you can query instances with a data source and use for_each—but unless you’re running Terraform repeatedly to catch changes, your DNS records won’t reflect real-time scaling events. That’s the exact limitation I’m talking about: Terraform isn’t imperative, it’s declarative, and it doesn’t react dynamically at runtime without external orchestration.




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