Azure Data Lake storage should be encrypted to protect sensitive information. It is considered best practice to encrypt data at-rest in any environment that supports it, especially as it is often required for certain compliance frameworks or industry regulations.
The Data Lake Storage Gen1 resources have been discontinued in Azure and will be replaced by Data Lake Storage Gen2 resources.
In Terraform -
In Azure Provider versions prior to v3.x (deprecated):
References:
https://registry.terraform.io/providers/hashicorp/azurerm/2.99.0/docs/resources/data_lake_store