diff --git a/README.md b/README.md
index a854bfac..2b5d38dd 100644
--- a/README.md
+++ b/README.md
@@ -12,7 +12,7 @@ From these new possibilities emerged an open-source software project named Magic
 
 ## Setup
 
-- Install [Terraform](https://releases.hashicorp.com/terraform/) (>= 1.2.1)
+- Install [Terraform](https://releases.hashicorp.com/terraform/) (>= 1.4.0)
 - Download the [latest release of Magic Castle](https://github.com/ComputeCanada/magic_castle/releases) for the cloud provider you wish to use.
 - Uncompress the release
 - Follow the instructions
diff --git a/docs/README.md b/docs/README.md
index b1bf3183..985dbda5 100644
--- a/docs/README.md
+++ b/docs/README.md
@@ -17,7 +17,7 @@
 ## 1. Setup
 
 To use Magic Castle you will need:
-1. Terraform (>= 1.2.1)
+1. Terraform (>= 1.4.0)
 2. Authenticated access to a cloud
 3. Ability to communicate with the cloud provider API from your computer
 4. A project with operational limits meeting the requirements described in _Quotas_ subsection.