Create a Compute Engine managed instance group with autoscaling enabled

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resource "google_compute_region_autoscaler" "foobar" {
  name   = "my-region-autoscaler"
  region = "us-central1"
  target = google_compute_region_instance_group_manager.foobar.id

  autoscaling_policy {
    max_replicas    = 5
    min_replicas    = 1
    cooldown_period = 60

    cpu_utilization {
      target = 0.5
    }
  }
}

resource "google_compute_instance_template" "foobar" {
  name         = "my-instance-template"
  machine_type = "e2-standard-4"

  disk {
    source_image = "debian-cloud/debian-11"
    disk_size_gb = 250
  }

  network_interface {
    network = "default"

    # default access config, defining external IP configuration
    access_config {
      network_tier = "PREMIUM"
    }
  }

  # To avoid embedding secret keys or user credentials in the instances, Google recommends that you use custom service accounts with the following access scopes.
  service_account {
    scopes = [
      "https://www.googleapis.com/auth/cloud-platform"
    ]
  }
}

resource "google_compute_target_pool" "foobar" {
  name   = "my-target-pool"
  region = "us-central1"
}

resource "google_compute_region_instance_group_manager" "foobar" {
  name   = "my-region-igm"
  region = "us-central1"

  version {
    instance_template = google_compute_instance_template.foobar.id
    name              = "primary"
  }

  target_pools       = [google_compute_target_pool.foobar.id]
  base_instance_name = "foobar"
}