Databricks Asset Bundles direct mode is now GA, and it's already the default for bundles created from the workspace, with full CLI default rollout on August 26, 2026. By removing the Terraform dependency, direct mode cuts deployment time by up to 40%, replaces opaque state with human-readable JSON, and unlocks resources like instance pools and Genie Agents that Terraform-gated releases used to delay.

Databricks just replaced the engine behind DABs deployment. Here's what Direct Engine changes, why it matters, and how to migrate your existing bundles before Terraform support goes away.

As teams migrate infrastructure definitions into Declarative Automation Bundles, Terraform still owns the Azure layer — Key Vaults, resource groups, networking. This post walks through a clean, CI/CD-ready pattern for passing Terraform outputs directly into bundle variable overrides, eliminating manual config steps and the environment drift that follows them.