diff --git a/.circleci/config.yml b/.circleci/config.yml
index 8f552060aa..b89772f069 100644
--- a/.circleci/config.yml
+++ b/.circleci/config.yml
@@ -9,7 +9,7 @@ jobs:
         # that flag starts the download asynchronously so we'd have a race
         # condition.
         # renovate: datasource=github-releases depName=hashicorp/terraform versioning=hashicorp
-        TERRAFORM_VERSION: 1.7.5
+        TERRAFORM_VERSION: 1.8.0
     steps:
     - checkout
     - run: make build-service
diff --git a/Dockerfile b/Dockerfile
index 1102b06a16..26a675955a 100644
--- a/Dockerfile
+++ b/Dockerfile
@@ -5,7 +5,7 @@ ARG DEBIAN_TAG=12.5-slim
 ARG GOLANG_VERSION=1.22.1
 
 # renovate: datasource=github-releases depName=hashicorp/terraform versioning=hashicorp
-ARG DEFAULT_TERRAFORM_VERSION=1.7.2
+ARG DEFAULT_TERRAFORM_VERSION=1.8.0
 # renovate: datasource=github-releases depName=hashicorp/terraform versioning=hashicorp
 ARG DEFAULT_OPENTOFU_VERSION=1.6.2
 # renovate: datasource=github-releases depName=open-policy-agent/conftest
@@ -122,7 +122,7 @@ RUN ./download-release.sh \
         "terraform" \
         "${TARGETPLATFORM}" \
         "${DEFAULT_TERRAFORM_VERSION}" \
-        "1.4.7 1.5.7 1.6.6 ${DEFAULT_TERRAFORM_VERSION}" \
+        "1.5.7 1.6.6 1.7.5 ${DEFAULT_TERRAFORM_VERSION}" \
     && ./download-release.sh \
         "tofu" \
         "${TARGETPLATFORM}" \
diff --git a/testdrive/utils.go b/testdrive/utils.go
index ba6d8288b4..ed7f77c1ca 100644
--- a/testdrive/utils.go
+++ b/testdrive/utils.go
@@ -35,7 +35,7 @@ import (
 )
 
 const hashicorpReleasesURL = "https://releases.hashicorp.com"
-const terraformVersion = "1.7.5" // renovate: datasource=github-releases depName=hashicorp/terraform versioning=hashicorp
+const terraformVersion = "1.8.0" // renovate: datasource=github-releases depName=hashicorp/terraform versioning=hashicorp
 const ngrokDownloadURL = "https://bin.equinox.io/c/4VmDzA7iaHb"
 const ngrokAPIURL = "localhost:41414" // We hope this isn't used.
 const atlantisPort = 4141
diff --git a/testing/Dockerfile b/testing/Dockerfile
index 2b8ee0e19c..1d7e65a1d3 100644
--- a/testing/Dockerfile
+++ b/testing/Dockerfile
@@ -6,7 +6,7 @@ RUN apt-get update && apt-get --no-install-recommends -y install unzip \
 
 # Install Terraform
 # renovate: datasource=github-releases depName=hashicorp/terraform versioning=hashicorp
-ENV TERRAFORM_VERSION=1.7.5
+ENV TERRAFORM_VERSION=1.8.0
 RUN case $(uname -m) in x86_64|amd64) ARCH="amd64" ;; aarch64|arm64|armv7l) ARCH="arm64" ;; esac && \
     wget -nv -O terraform.zip https://releases.hashicorp.com/terraform/${TERRAFORM_VERSION}/terraform_${TERRAFORM_VERSION}_linux_${ARCH}.zip && \
     mkdir -p /usr/local/bin/tf/versions/${TERRAFORM_VERSION} && \