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The IAM authentication for MSK (Kafka) can be implemented using Terraform with the following steps:

Step 1: Define the required resources in Terraform

• Define an IAM role for MSK authentication with the required permissions.
• Define an IAM policy for the role that allows access to the relevant resources in MSK.
• Define an IAM instance profile that will be used to launch the EC2 instances running Kafka consumers/producers.

Step 2: Create an EC2 instance with the required configuration

• Use Terraform to create an EC2 instance with the desired configuration for running Kafka consumers/producers.
• Attach the IAM role and instance profile defined in Step 1 to the EC2 instance.

Step 3: Configure Kafka on the EC2 instance

• Use a tool like AWS CLI to configure Kafka on the EC2 instance.
• Specifically, configure Kafka to use IAM authentication.
• This involves modifying the Kafka configuration file, setting the appropriate properties for SSL, SASL, and JAAS configurations.

Step 4: Launch Kafka consumers/producers

• Finally, launch Kafka consumers/producers that will use IAM credentials for authentication.
• This can be done using any suitable tool or library that supports IAM authentication for MSK.

The above steps can be implemented in Terraform code to automate the entire process of creating and configuring Kafka instances with IAM authentication.