diff --git a/.gitlab-ci.yml b/.gitlab-ci.yml
index 5670f8aa60d135eb697634b7e85c3732c497c44b..1920be30a28b0fac4b953c3e0ba225000fb228f6 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:1.10.5'
+    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:
@@ -112,7 +112,7 @@ review_smoketest:
 review_destroy:
   needs: ['review_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