diff --git a/observability/main.tf b/observability/main.tf
new file mode 100644
index 0000000..1268066
--- /dev/null
+++ b/observability/main.tf
@@ -0,0 +1,5 @@
+resource "stackit_observability_instance" "this" {
+  project_id = var.project_id
+  name       = var.name
+  plan_name  = var.plan_name
+}
diff --git a/observability/output.tf b/observability/output.tf
new file mode 100644
index 0000000..e69de29
diff --git a/observability/providers.tf b/observability/providers.tf
new file mode 100644
index 0000000..8962cf6
--- /dev/null
+++ b/observability/providers.tf
@@ -0,0 +1,10 @@
+
+terraform {
+  required_version = ">= 1.9.0"
+  required_providers {
+    stackit = {
+      source  = "stackitcloud/stackit"
+      version = "0.56.0"
+    }
+  }
+}
diff --git a/observability/variables.tf b/observability/variables.tf
new file mode 100644
index 0000000..f3be80f
--- /dev/null
+++ b/observability/variables.tf
@@ -0,0 +1,11 @@
+variable "project_id" {
+  type = string
+}
+
+variable "name" {
+  type = string
+}
+
+variable "plan_name" {
+  type = string
+}