Check out example codes for "enable provider plugin cache in terraform". It will help you in understanding the concepts better.
Code Example 1
To enable the plugin cache, use the plugin_cache_dir
setting in the CLI configuration file
<plugin_cache_dir> = "$HOME/.terraform.d/plugin-cache"
Environmental Variable used to enable Plugin:---->
<TF_PLUGIN_CACHE_DIR environment variable>
can be used to enable caching or to override an existing cache directory
within a particular shell session.
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