diff --git a/cloud/cloud.Dockerfile b/cloud/cloud.Dockerfile
index 2b55eff62..d047f8416 100644
--- a/cloud/cloud.Dockerfile
+++ b/cloud/cloud.Dockerfile
@@ -9,7 +9,7 @@ FROM bellsoft/liberica-openjre-debian:11.0.19-7 as arm64
 
 FROM ${TARGETARCH}
 
-COPY --from=hashicorp/terraform:1.5.6 /bin/terraform /usr/local/bin/
+COPY --from=hashicorp/terraform:1.6.3 /bin/terraform /usr/local/bin/
 COPY --from=amazon/aws-cli:2.13.12 /usr/local /usr/local
 COPY --from=amazon/aws-cli:2.13.12 /aws /aws
 # TODO(#3222): Add Azure CLI and make sure It works with arm64.