diff --git a/cli/internal/cloudcmd/tfvars.go b/cli/internal/cloudcmd/tfvars.go
index a4ab3ad4c8..2d55342da2 100644
--- a/cli/internal/cloudcmd/tfvars.go
+++ b/cli/internal/cloudcmd/tfvars.go
@@ -64,6 +64,14 @@ func TerraformIAMUpgradeVars(conf *config.Config, fileHandler file.Handler) (ter
 		if err := terraform.VariablesFromBytes(oldVarBytes, &oldVars); err != nil {
 			return nil, fmt.Errorf("parsing existing IAM workspace: %w", err)
 		}
+
+		// Migration from the "region" to the "location" field name.
+		// TODO(msanft): Remove after v2.14.0 is released.
+		if oldVars.Region != nil && *oldVars.Region != "" && oldVars.Location == "" {
+			oldVars.Location = *oldVars.Region
+			oldVars.Region = nil
+		}
+
 		vars = azureTerraformIAMVars(conf, oldVars)
 	case cloudprovider.GCP:
 		var oldVars terraform.GCPIAMVariables
diff --git a/cli/internal/terraform/variables.go b/cli/internal/terraform/variables.go
index cdcbe90a55..210fa71bab 100644
--- a/cli/internal/terraform/variables.go
+++ b/cli/internal/terraform/variables.go
@@ -244,6 +244,9 @@ type AzureNodeGroup struct {
 
 // AzureIAMVariables is user configuration for creating the IAM configuration with Terraform on Microsoft Azure.
 type AzureIAMVariables struct {
+	// Region is the Azure location to use. (e.g. westus).
+	// THIS FIELD IS DEPRECATED AND ONLY KEPT FOR MIGRATION PURPOSES. DO NOT USE.
+	Region *string `hcl:"region" cty:"region"`
 	// Location is the Azure location to use. (e.g. westus)
 	Location string `hcl:"location" cty:"location"`
 	// ServicePrincipal is the name of the service principal to use.