diff --git a/.gitignore b/.gitignore
index d2f6471c..8f21e32a 100644
--- a/.gitignore
+++ b/.gitignore
@@ -2,3 +2,4 @@ quickstart/101-machine-learning/.terraform.lock.hcl
 quickstart/101-machine-learning/.terraform/providers/registry.terraform.io/hashicorp/azurerm/2.76.0/windows_amd64/terraform-provider-azurerm_v2.76.0_x5.exe
 quickstart/101-machine-learning/terraform.tfstate
 quickstart/101-machine-learning/demo.tfplan
+quickstart/201-machine-learning-moderately-secure/demo.tfplan
diff --git a/quickstart/201-machine-learning-moderately-secure/compute.tf b/quickstart/201-machine-learning-moderately-secure/compute.tf
new file mode 100644
index 00000000..2544c5a6
--- /dev/null
+++ b/quickstart/201-machine-learning-moderately-secure/compute.tf
@@ -0,0 +1,37 @@
+# Generate random string for unique compute instance name
+resource "random_string" "ci_prefix" {
+  length = 8
+  upper = false
+  special = false
+  number = false
+}
+
+# Compute instance
+resource "azurerm_machine_learning_compute_instance" "compute_instance" {
+  name                          = "${random_string.ci_prefix.result}instance"
+  location                      = azurerm_resource_group.default.location
+  machine_learning_workspace_id = azurerm_machine_learning_workspace.default.id
+  virtual_machine_size          = "STANDARD_DS2_V2"
+  subnet_resource_id            = azurerm_subnet.snet-training.id
+}
+
+# Compute cluster
+resource "azurerm_machine_learning_compute_cluster" "compute" {
+  name                          = "cpu-cluster"
+  location                      = azurerm_resource_group.default.location
+  machine_learning_workspace_id = azurerm_machine_learning_workspace.default.id
+  vm_priority                   = "Dedicated"
+  vm_size                       = "STANDARD_DS2_V2"
+  subnet_resource_id            = azurerm_subnet.snet-training.id
+  
+  identity {
+    type = "SystemAssigned"
+  }
+
+  scale_settings {
+    min_node_count                       = 0
+    max_node_count                       = 3
+    scale_down_nodes_after_idle_duration = "PT15M" # 15 minutes
+  }
+  
+}
\ No newline at end of file
diff --git a/quickstart/201-machine-learning-moderately-secure/network.tf b/quickstart/201-machine-learning-moderately-secure/network.tf
index c1751545..06010ff7 100644
--- a/quickstart/201-machine-learning-moderately-secure/network.tf
+++ b/quickstart/201-machine-learning-moderately-secure/network.tf
@@ -82,6 +82,11 @@ resource "azurerm_private_dns_zone_virtual_network_link" "vnetlinkcr" {
 resource "azurerm_private_dns_zone" "dnsazureml" {
   name                = "privatelink.api.azureml.ms"
   resource_group_name = azurerm_resource_group.default.name
+
+  depends_on = [
+    azurerm_machine_learning_compute_cluster.compute,
+    azurerm_machine_learning_compute_instance.compute_instance
+  ]
 }
 
 resource "azurerm_private_dns_zone_virtual_network_link" "vnetlinkml" {
@@ -94,6 +99,11 @@ resource "azurerm_private_dns_zone_virtual_network_link" "vnetlinkml" {
 resource "azurerm_private_dns_zone" "dnsnotebooks" {
   name                = "privatelink.notebooks.azure.net"
   resource_group_name = azurerm_resource_group.default.name
+
+  depends_on = [
+    azurerm_machine_learning_compute_cluster.compute,
+    azurerm_machine_learning_compute_instance.compute_instance
+  ]
 }
 
 resource "azurerm_private_dns_zone_virtual_network_link" "vnetlinknbs" {
diff --git a/quickstart/201-machine-learning-moderately-secure/readme.md b/quickstart/201-machine-learning-moderately-secure/readme.md
index 6c5fbe6e..17bbf831 100644
--- a/quickstart/201-machine-learning-moderately-secure/readme.md
+++ b/quickstart/201-machine-learning-moderately-secure/readme.md
@@ -43,6 +43,8 @@ This configuration describes the minimal set of resources you require to get sta
 ## Usage
 
 ```bash
+terraform init
+
 terraform plan -var name=azureml567 -out demo.tfplan
 
 terraform apply "demo.tfplan"