Terraform MCP Server deployment using Hashicorp VS Code extension

.changes/unreleased/ENHANCEMENTS-20250821-185355.yaml

@@ -0,0 +1,6 @@
+kind: ENHANCEMENTS
+body: Terraform MCP Server deployment using Hashicorp VS Code extension
+time: 2025-08-21T18:53:55.326683+05:30
+custom:
+    Issue: "2086"
+    Repository: vscode-terraform

package.json

@@ -56,6 +56,12 @@
   "main": "./dist/extension",
   "browser": "./dist/web/extension",
   "contributes": {
+    "mcpServerDefinitionProviders": [
+      {
+        "id": "terraform.mcp.server",
+        "label": "HashiCorp Terraform MCP Server"
+      }
+    ],
     "languages": [
       {
         "id": "terraform",

src/extension.ts

@@ -36,6 +36,7 @@ import { TerraformCommands } from './commands/terraform';
 import * as lsStatus from './status/language';
 import { TerraformCloudFeature } from './features/terraformCloud';
 import { setupMockServer, stopMockServer } from './test/e2e/specs/mocks/server';
+import { McpServerFeature } from './features/mcpServer';
 
 const id = 'terraform';
 const brand = `HashiCorp Terraform`;
@@ -70,6 +71,9 @@ export async function activate(context: vscode.ExtensionContext): Promise<void>
 
   context.subscriptions.push(new TerraformCloudFeature(context, reporter, tfcOutputChannel));
 
+  // Register MCP server feature
+  context.subscriptions.push(new McpServerFeature(context, reporter, outputChannel));
+
   if (config('terraform').get<boolean>('languageServer.enable') === false) {
     reporter.sendTelemetryEvent('disabledTerraformLS');
     return;

src/features/mcpServer.ts

@@ -0,0 +1,173 @@
+/**
+ * Copyright (c) HashiCorp, Inc.
+ * SPDX-License-Identifier: MPL-2.0
+ */
+
+import TelemetryReporter from '@vscode/extension-telemetry';
+import { exec } from 'child_process';
+import { promisify } from 'util';
+import * as vscode from 'vscode';
+import which from 'which';
+
+const execAsync = promisify(exec);
+
+interface McpServerDefinition {
+  label: string;
+  command: string;
+  args: string[];
+  env: Record<string, string>;
+}
+
+export class McpServerFeature {
+  constructor(
+    private context: vscode.ExtensionContext,
+    private reporter: TelemetryReporter,
+    private outputChannel: vscode.OutputChannel,
+  ) {
+    this.activate();
+  }
+
+  /**
+   * Helper method to format and log error information
+   */
+  private logError(message: string, error: unknown): void {
+    this.outputChannel.appendLine(`${message}: ${String(error)}`);
+    if (error instanceof Error && error.stack) {
+      this.outputChannel.appendLine(`Stack trace: ${error.stack}`);
+    }
+  }
+
+  public activate(): void {
+    try {
+      if (!this.isMcpApiAvailable()) {
+        return;
+      }
+
+      const provider = this.registerMcpServerProvider();
+      if (provider) {
+        this.context.subscriptions.push(provider);
+      }
+    } catch (error) {
+      this.logError('Failed to register MCP server definition provider', error);
+      // Don't throw - let the extension continue to work without MCP server
+    }
+  }
+
+  private isMcpApiAvailable(): boolean {
+    // Check if VS Code has the MCP API available
+    // eslint-disable-next-line @typescript-eslint/no-explicit-any
+    return typeof (vscode as any).lm?.registerMcpServerDefinitionProvider === 'function';
+  }
+
+  private registerMcpServerProvider(): vscode.Disposable | undefined {
+    try {
+      // eslint-disable-next-line @typescript-eslint/no-explicit-any
+      const vscodeAny = vscode as any;
+      // eslint-disable-next-line @typescript-eslint/no-unsafe-return
+      return vscodeAny.lm.registerMcpServerDefinitionProvider('terraform.mcp.server', {
+        provideMcpServerDefinitions: () => {
+          return this.provideMcpServerDefinitions();
+        },
+      });
+    } catch (error) {
+      this.logError('Error registering MCP server provider', error);
+      return undefined;
+    }
+  }
+
+  private async provideMcpServerDefinitions(): Promise<McpServerDefinition[]> {
+    try {
+      const dockerAvailable = await this.dockerValidations();
+      if (!dockerAvailable) {
+        return [];
+      }
+
+      const server: McpServerDefinition = {
+        label: 'HashiCorp Terraform MCP Server',
+        command: 'docker',
+        args: ['run', '-i', '--rm', 'hashicorp/terraform-mcp-server'],
+        env: {},
+      };
+
+      this.showMcpServerInfoMessage();
+
+      return [server];
+    } catch (error) {
+      this.logError('Error providing MCP server definitions', error);
+      return [];
+    }
+  }
+  private async dockerValidations(): Promise<boolean> {
+    try {
+      if (!(await this.checkDockerAvailability())) {
+        return false;
+      }
+
+      if (!(await this.checkDockerRunning())) {
+        return false;
+      }
+
+      return true;
+    } catch (error) {
+      this.logError('Docker validation error', error);
+      return false;
+    }
+  }
+
+  private async checkDockerAvailability(): Promise<boolean> {
+    try {
+      await which('docker');
+      return true;
+    } catch {
+      void vscode.window
+        .showWarningMessage(
+          'Docker is required to run the Terraform MCP Server. Please install Docker to use this feature.',
+          'Learn More',
+        )
+        .then((selection) => {
+          if (selection === 'Learn More') {
+            void vscode.env.openExternal(vscode.Uri.parse('https://docs.docker.com/get-docker/'));
+          }
+        });
+      return false;
+    }
+  }
+
+  private async checkDockerRunning(): Promise<boolean> {
+    try {
+      await execAsync('docker info', { timeout: 5000 });
+      return true;
+    } catch (error) {
+      this.logError('Docker daemon check failed', error);
+      void vscode.window
+        .showWarningMessage(
+          'Docker is installed but not running. Please start Docker to use the Terraform MCP Server.',
+          'Learn More',
+        )
+        .then((selection) => {
+          if (selection === 'Learn More') {
+            void vscode.env.openExternal(vscode.Uri.parse('https://docs.docker.com/get-started/'));
+          }
+        });
+      return false;
+    }
+  }
+
+  private showMcpServerInfoMessage(): void {
+    const message = 'Terraform MCP Server is now available for GitHub Copilot integration.';
+    const startAction = 'Start MCP Server';
+    const learnMoreAction = 'Learn More';
+
+    void vscode.window.showInformationMessage(message, startAction, learnMoreAction).then((selection) => {
+      if (selection === startAction) {
+        void vscode.commands.executeCommand('workbench.action.quickOpen', '>MCP: List Servers');
+      } else if (selection === learnMoreAction) {
+        void vscode.env.openExternal(vscode.Uri.parse('https://github.com/hashicorp/terraform-mcp-server'));
+      }
+    });
+  }
+
+  dispose(): void {
+    // context.subscriptions will be disposed by the extension, so any explicit code should not be required.
+  }
+}