Any folder that contains Terraform files is a module. The one you run terraform from is your root module. From this root module, you can call child modules: a local folder, a module published in a registry, or a module kept in a Git repository.
A module groups resources that form a coherent capability. You will come across some, for example, for:
Modules make your configurations reusable and allow your organization to offer standardized components, which any team can call without rewriting their content. Official reference — Modules
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