diff --git a/.gitlab-ci.yml b/.gitlab-ci.yml
index 2cf47a08df4a3103b53b99ecbe0d25963c5c545f..92d03167742c3a1b582c86afe8970dc213fa4483 100644
--- a/.gitlab-ci.yml
+++ b/.gitlab-ci.yml
@@ -43,7 +43,7 @@ build_docker:
 .deploy:
   stage: "deploy"
   image:
-    name: 'europe-north1-docker.pkg.dev/holi-shared/docker-hub-remote/hashicorp/terraform:1.10.5'
+    name: 'europe-north1-docker.pkg.dev/holi-shared/docker-hub-remote/hashicorp/terraform:1.11.0'
     # 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 db77e0ee9760ad2a1d6af56399723c47e18fcf18..1cac385c6cb864bab53f6846e112f5a93fd17401 100644
--- a/.terraform-version
+++ b/.terraform-version
@@ -1 +1 @@
-1.10.5
+1.11.0