diff --git a/.gitlab-ci.yml b/.gitlab-ci.yml
index c33dd3d458f18aef6c2b5d89b60752ef182e7e17..ec152f6f3e432827192d6f8338b9653d0589c10b 100644
--- a/.gitlab-ci.yml
+++ b/.gitlab-ci.yml
@@ -15,7 +15,7 @@ variables:
 
 .deploy:
   image:
-    name: 'europe-north1-docker.pkg.dev/holi-shared/docker-hub-remote/hashicorp/terraform:1.6.6'
+    name: 'europe-north1-docker.pkg.dev/holi-shared/docker-hub-remote/hashicorp/terraform:1.9.8'
     # default entrypoint is terraform command, but we want to run shell scripts
     entrypoint: ['/bin/sh', '-c']
   variables:
@@ -110,7 +110,7 @@ review_smoketest:
 review_destroy:
   needs: ['review_deploy']
   image:
-    name: 'europe-north1-docker.pkg.dev/holi-shared/docker-hub-remote/hashicorp/terraform:1.6.6'
+    name: 'europe-north1-docker.pkg.dev/holi-shared/docker-hub-remote/hashicorp/terraform:1.9.8'
     # default entrypoint is terraform command, but we want to run shell scripts
     entrypoint: ['/bin/sh', '-c']
   variables:
diff --git a/.terraform-version b/.terraform-version
index 9c6d6293b1a8f448def89c2d5bfa63b89a24e0cc..66beabb5795e7441046623a209a2c48f22e7d20a 100644
--- a/.terraform-version
+++ b/.terraform-version
@@ -1 +1 @@
-1.6.1
+1.9.8