Setting Up Visual Studio Code and Azure CLI on Windows Using PowerShell

Setting up a development environment is one of the first steps when starting any technical project. However, the process can sometimes be confusing, especially when different tools, terminals, and command-line environments are involved.

As I began exploring cloud technologies and command-line tools, I needed to prepare my local environment to interact with Microsoft Azure. This meant installing a code editor, configuring a terminal environment, and setting up Azure CLI so that I could manage cloud resources directly from my computer.

In this article, I will walk through how I installed Visual Studio Code, opened and used the integrated PowerShell terminal, and installed Azure CLI to connect to Microsoft Azure. Along the way, I’ll demonstrate a few basic terminal commands and explain some small syntax details that can sometimes cause confusion when working in PowerShell.

If you're new to cloud tools or command-line environments, this guide will help you set up a simple and functional development environment on Windows.

Below is a clean walkthrough you can follow in your blog after the introduction.

1. Installing Visual Studio Code

To begin setting up the development environment, I installed Visual Studio Code, a popular and lightweight code editor used by developers. From your browser, search for, download and install Visual Studio Code depending on your operating system (I will be working with Windows).

2. Launching Visual Studio Code

Once the installation is complete, click Finish to open Visual Studio Code.
You can also launch it later by:

• Clicking the Start Menu, searching for Visual Studio Code and open it. When the editor opens, you will see the main workspace interface.

3. Opening a Project Folder
Before using the terminal, it is good practice to create and open a working folder.
STEPS:

• On your welcome screen, search for and select File and from the drop-down menu, select Open Folder.

• On your system folder, select New folder at the top left, name it and click Select folder.
  This folder will serve as your working directory for commands and files used during the setup.

4. Opening the Integrated Terminal
After creating and opening a working folder, the next step is to access the integrated terminal inside Visual Studio Code. The integrated terminal allows you to run command-line instructions without leaving the editor, making it easier to manage files and execute commands in one place.
Do not forget to close the Welcome message and the chat box page on the screen.
STEPS:

• From the top menu bar, click Terminal then New Terminal.

• A terminal panel will open at the bottom of the editor.
  By default on Windows systems, the terminal opens using Windows PowerShell.
  You should see something similar to:

The PS prefix indicates that the terminal is running PowerShell.

5. Install Azure CLI
First, install Azure CLI, which is the command-line tool used to manage resources in Microsoft Azure.

STEPS:

• Open your web browser and search for Azure CLI download.

• Scroll down and copy the installer package for your operating system, but in my case I'm downloading i for Windows.

• Paste the command into the terminal in Visual Studio Code and press Enter to complete the setup.
  In my case, already have it installed.
  

• Verify the installation by typing az --version and press enter.

If the installation worked correctly, it will display the installed Azure CLI version.

6. Log in to Azure
Next, authenticate your CLI with Microsoft Azure.

• Run: az login and sign in or select the Azure account you want to log into.

• Return a JSON output showing your subscription details. NOTE: you need to select your subscription number(type 1 or any other number depending on your subscription and press enter).

In case you noticed, the Terminal shows PS C:\Users\Fadeyi Peter> instead of showing the folder we created earlier. To correct the Directory, Run cd "your folder name" for example: cd "Linux Servers". Then your Terminal shows it.

7. Confirm Your Account

You can verify your active account by running: az account show
This displays the state and the currently active subscription in Azure CLI.

8. Running Basic Commands in PowerShell
After successfully signing in to Microsoft Azure using Azure CLI, it is helpful to run a few basic commands to understand how the terminal works.

Since the integrated terminal in Visual Studio Code opens Windows PowerShell by default on Windows, we can begin by testing a few simple commands.

• Display the Current Directory. Run pwd to see the current working directory. This command shows the folder where your terminal is currently operating.

• List Files and Folders To display the files and folders in the current directory, run: ls. If the folder is empty, nothing will be displayed. Once files are created, they will appear in the list.

• Create a Test File. You can create a simple file using: New-Item test.txt and Run ls again and it should now display the file you just created.

• You can display Text in the Terminal. Another simple command like running echo "PowerShell is working".

This prints text to the terminal, confirming that commands are being executed correctly.

9. Defining Variables in PowerShell
While experimenting with commands, I attempted to define variables within the PowerShell environment. However, I quickly ran into several errors because PowerShell requires a specific syntax when declaring variables.

In PowerShell, variables must begin with the $ symbol.

If the $ symbol is omitted, PowerShell does not recognize the variable and returns an error. This small syntax requirement initially caused confusion and led to several failed command attempts.

Creating a Resource Group with Azure CLI

In this section, we will define variables and create a Resource Group using PowerShell with Azure CLI. This allows us to reuse values such as the resource group name and location when running commands.

Later in the series, we will explore how to switch from PowerShell to Bash using Windows Subsystem for Linux and examine how command syntax and variable handling differ between these environments.

STEPS

i. Define your variables.
You can define variables like this:

$RG = "Testing-09-rg"
$LOCATION = "eastus"

Write each variable and press enter, then define the next.

ii. Run az group create --name $RG --location $LOCATION to create a resource group.
When referencing a variable in a command, you must prefix it with the $ symbol so PowerShell substitutes the value stored in the variable. Also check the provisioningState to know if the resource group was created or not.

iii. You can also run az group list --output table to see the resource group on Visual Studio code.

iv. If navigate to the Azure portal, and check your Resource group, you will also see that it's there.

Now you can create different Azure resource depending on your task.

Delete Resource through the Visual Studio code
As you can create a resource through the Visual Studio code, you can as well delete through it. Example, to delete the Resource group created, run az group delete --name $RG

Azure will ask for confirmation: Are you sure you want to perform this operation? (y/n)

• Enter yes or y to confirm deletion.

• Run az group list --output table, you will see that it will not show the resource group again.

• You can also navigate to the azure portal to confirm.

Conclusion

Setting up a development environment is an important first step when working with cloud platforms and command-line tools. In this guide, we walked through the process of installing Visual Studio Code, opening and using the integrated PowerShell terminal, and installing Azure CLI to connect to Microsoft Azure.

Along the way, we explored a few basic PowerShell commands, learned how to navigate directories, create files, and verify our Azure account directly from the terminal. We also discovered how small syntax rules—such as the requirement to use the $ symbol when defining variables in PowerShell—can sometimes lead to errors if overlooked.

Understanding these fundamentals makes it much easier to work with command-line tools and cloud resources. With this environment now set up, we are ready to move on to more advanced tasks such as automating cloud resource creation and exploring other shell environments like Bash.

In the next article, we’ll explore how to switch from PowerShell to Bash using Windows Subsystem for Linux (WSL) and examine how variable syntax and command behavior differ between these two environments.