diff --git a/contrib/terraform/upcloud/cluster-settings.tfvars b/contrib/terraform/upcloud/cluster-settings.tfvars
index 45a374900f7..120d15433a0 100644
--- a/contrib/terraform/upcloud/cluster-settings.tfvars
+++ b/contrib/terraform/upcloud/cluster-settings.tfvars
@@ -1,5 +1,11 @@
 # See: https://developers.upcloud.com/1.3/5-zones/
-zone     = "fi-hel1"
+zone          = "fi-hel1"
+private_cloud = false
+
+# Only used if private_cloud = true, public zone equivalent
+# For example use finnish public zone for finnish private zone
+public_zone = "fi-hel2"
+
 username = "ubuntu"
 
 # Prefix to use for all resources to separate them from other resources
diff --git a/contrib/terraform/upcloud/main.tf b/contrib/terraform/upcloud/main.tf
index 30986667dd5..78fc0786fb6 100644
--- a/contrib/terraform/upcloud/main.tf
+++ b/contrib/terraform/upcloud/main.tf
@@ -11,8 +11,10 @@ provider "upcloud" {
 module "kubernetes" {
   source = "./modules/kubernetes-cluster"
 
-  prefix = var.prefix
-  zone   = var.zone
+  prefix        = var.prefix
+  zone          = var.zone
+  private_cloud = var.private_cloud
+  public_zone   = var.public_zone
 
   template_name = var.template_name
   username      = var.username
diff --git a/contrib/terraform/upcloud/modules/kubernetes-cluster/main.tf b/contrib/terraform/upcloud/modules/kubernetes-cluster/main.tf
index 2adeb44678f..5226c42294a 100644
--- a/contrib/terraform/upcloud/modules/kubernetes-cluster/main.tf
+++ b/contrib/terraform/upcloud/modules/kubernetes-cluster/main.tf
@@ -512,7 +512,7 @@ resource "upcloud_loadbalancer" "lb" {
   configured_status = "started"
   name              = "${local.resource-prefix}lb"
   plan              = var.loadbalancer_plan
-  zone              = var.zone
+  zone              = var.private_cloud ? var.public_zone : var.zone
   network           = upcloud_network.private.id
 }
 
diff --git a/contrib/terraform/upcloud/modules/kubernetes-cluster/variables.tf b/contrib/terraform/upcloud/modules/kubernetes-cluster/variables.tf
index ad2cc70f020..a7aa8ad4d05 100644
--- a/contrib/terraform/upcloud/modules/kubernetes-cluster/variables.tf
+++ b/contrib/terraform/upcloud/modules/kubernetes-cluster/variables.tf
@@ -6,6 +6,14 @@ variable "zone" {
   type = string
 }
 
+variable "private_cloud" {
+  type = bool
+}
+
+variable "public_zone" {
+  type = string
+}
+
 variable "template_name" {}
 
 variable "username" {}
diff --git a/contrib/terraform/upcloud/variables.tf b/contrib/terraform/upcloud/variables.tf
index 9d8c90c1769..4baef23578e 100644
--- a/contrib/terraform/upcloud/variables.tf
+++ b/contrib/terraform/upcloud/variables.tf
@@ -9,6 +9,15 @@ variable "zone" {
   description = "The zone where to run the cluster"
 }
 
+variable "private_cloud" {
+  description = "Whether the environment is in the private cloud region"
+  default     = false
+}
+
+variable "public_zone" {
+  description = "The public zone equivalent if the cluster is running in a private cloud zone"
+}
+
 variable "template_name" {
   description = "Block describing the preconfigured operating system"
 }