diff --git a/environment_setup/iac-create-environment-pipeline-tf.yml b/environment_setup/iac-create-environment-pipeline-tf.yml
index ef184546..40d2f11c 100644
--- a/environment_setup/iac-create-environment-pipeline-tf.yml
+++ b/environment_setup/iac-create-environment-pipeline-tf.yml
@@ -15,18 +15,18 @@ pr:
     - environment_setup/tf-templates/*
 
 pool:
-  vmImage: 'ubuntu-latest'
+  name: mlopspool
 
 variables:
 - group: devopsforai-aml-vg
 
 steps:
-- task: charleszipp.azure-pipelines-tasks-terraform.azure-pipelines-tasks-terraform-installer.TerraformInstaller@0
+- task: TerraformInstaller@1
   displayName: 'Use Terraform 0.12.24'
   inputs:
-    terraformVersion: 0.12.24
+    terraformVersion: 1.9.8
 
-- task: charleszipp.azure-pipelines-tasks-terraform.azure-pipelines-tasks-terraform-cli.TerraformCLI@0
+- task: TerraformCLI@0
   displayName: 'TF init - Deploy MLOps resources to Azure'
   inputs:
     command: init
@@ -41,14 +41,16 @@ steps:
     backendAzureRmStorageAccountSku: 'Standard_LRS'
     backendAzureRmContainerName: 'tfstate-cont'
     backendAzureRmKey: 'mlopsinfra.tfstate'
+  env:
+    ARM_USE_AZUREAD: true
 
-- task: charleszipp.azure-pipelines-tasks-terraform.azure-pipelines-tasks-terraform-cli.TerraformCLI@0
+- task: TerraformCLI@0
   displayName: 'TF validate - Deploy MLOps resources to Azure'
   inputs:
     command: validate
     workingDirectory: '$(Build.SourcesDirectory)/environment_setup/tf-templates'
 
-- task: charleszipp.azure-pipelines-tasks-terraform.azure-pipelines-tasks-terraform-cli.TerraformCLI@0
+- task: TerraformCLI@0
   displayName: 'TF plan - Deploy MLOps resources to Azure'
   inputs:
     command: plan
@@ -59,7 +61,7 @@ steps:
     TF_VAR_RESOURCE_GROUP: $(RESOURCE_GROUP)
     TF_VAR_WORKSPACE_NAME: $(WORKSPACE_NAME)
 
-- task: charleszipp.azure-pipelines-tasks-terraform.azure-pipelines-tasks-terraform-cli.TerraformCLI@0
+- task: TerraformCLI@0
   displayName: 'TF apply - Deploy MLOps resources to Azure'
   inputs:
     command: apply
diff --git a/environment_setup/iac-pipeline.yml b/environment_setup/iac-pipeline.yml
new file mode 100644
index 00000000..f156e977
--- /dev/null
+++ b/environment_setup/iac-pipeline.yml
@@ -0,0 +1,74 @@
+trigger:
+- main
+
+pool:
+  name: 'mlopspool'
+
+variables:
+  - group: devopsforai-aml-vg
+  
+steps:
+# Step 1: Install Terraform
+# - task: TerraformInstaller@0
+#   displayName: 'Install Terraform'
+#   inputs:
+#     terraformVersion: 'latest'
+
+# - task: TerraformTaskV4@4
+#   displayName: 'terraform init'
+#   inputs:
+#     provider: 'azurerm'
+#     command: 'init'
+#     workingDirectory: $(Build.SourcesDirectory)/environment_setup/tf-templates
+#     backendServiceArm: 'azure-resource-connection'
+#     backendAzureRmResourceGroupName: '$(RESOURCE_GROUP)'
+#     backendAzureRmStorageAccountName: '$(BASE_NAME)statestor'
+#     backendAzureRmContainerName: 'tfstate-cont'
+#     backendAzureRmKey: 'mlopsinfra.tfstate'
+#   env:
+#     ARM_USE_AZUREAD: true
+# - task: TerraformCLI@0
+#   displayName: 'Terraform Init'
+#   inputs:
+#     command: 'init'
+#     workingDirectory: $(Build.SourcesDirectory)/environment_setup/tf-templates
+#     environmentServiceName: 'azure-resource-connection'
+#     environmentVariables:
+#       ARM_CLIENT_ID: $(ARM_CLIENT_ID)
+#       ARM_CLIENT_SECRET: $(ARM_CLIENT_SECRET)
+#       ARM_TENANT_ID: $(ARM_TENANT_ID)
+#       ARM_SUBSCRIPTION_ID: $(ARM_SUBSCRIPTION_ID)
+# Step 2: Login to Azure using Service Principal
+- task: AzureCLI@2
+  inputs:
+    azureSubscription: 'azure-resource-connection'
+    scriptType: 'bash'
+    scriptLocation: 'inlineScript'
+    inlineScript: |
+      echo "Logging in with Service Principal..."
+      az login --service-principal -u $(ARM_CLIENT_ID) -p $(ARM_CLIENT_SECRET) --tenant $(ARM_TENANT_ID)
+
+# Step 3: Initialize Terraform Backend
+- script: |
+    terraform init \
+      -backend-config="storage_account_name=$(BASE_NAME)statestor" \
+      -backend-config="container_name=tfstate-cont" \
+      -backend-config="key=mlopsinfra.tfstate" \
+      -backend-config="resource_group_name=$(RESOURCE_GROUP)" \
+      -backend-config="client_id=$(ARM_CLIENT_ID)" \
+      -backend-config="client_secret=$(ARM_CLIENT_SECRET)" \
+      -backend-config="tenant_id=$(ARM_TENANT_ID)"
+  workingDirectory: $(Build.SourcesDirectory)/environment_setup/tf-templates
+  displayName: 'Terraform Init'
+
+# # Step 4: Terraform Plan
+# - script: |
+#     terraform plan -out=tfplan
+#   workingDirectory: $(Build.SourcesDirectory)/environment_setup/tf-templates
+#   displayName: 'Terraform Plan'
+
+# # Step 5: Terraform Apply
+# - script: |
+#     terraform apply -auto-approve tfplan
+#   workingDirectory: $(Build.SourcesDirectory)/environment_setup/tf-templates
+#   displayName: 'Terraform Apply'
diff --git a/environment_setup/tf-templates/backend.tf b/environment_setup/tf-templates/backend.tf
index 0aec0499..5817fca6 100644
--- a/environment_setup/tf-templates/backend.tf
+++ b/environment_setup/tf-templates/backend.tf
@@ -1,4 +1,10 @@
 terraform {
   backend "azurerm" {
+    resource_group_name  = "mlops-RG"
+    storage_account_name = "mlopsstatestor"
+    container_name       = "tfstate-cont"
+    key                  = "mlopsinfra.tfstate"
+
+    # These environment variables will be used for Service Principal authentication
   }
 }
diff --git a/environment_setup/tf-templates/main.tf b/environment_setup/tf-templates/main.tf
index c57a5a84..e399d512 100644
--- a/environment_setup/tf-templates/main.tf
+++ b/environment_setup/tf-templates/main.tf
@@ -1,6 +1,7 @@
 provider "azurerm" {
  version = "=2.3.0"
  features {}
+ use_oidc_token = true
 }
 
 variable BASE_NAME {}