diff --git a/terraform/fabric/fabric-capacity/main.tf b/terraform/fabric/fabric-capacity/main.tf
index 35a0b8e7..400bb182 100644
--- a/terraform/fabric/fabric-capacity/main.tf
+++ b/terraform/fabric/fabric-capacity/main.tf
@@ -1,22 +1,24 @@
-resource "azapi_resource" "fabric_capacity" {
-  type                      = "Microsoft.Fabric/capacities@2022-07-01-preview"
-  name                      = "fab${var.basename}"
-  parent_id                 = var.resource_group_id
-  location                  = var.location
-  schema_validation_enabled = false
-
-  body = jsonencode({
-    properties = {
-      administration = {
-        members = [
-          var.admin_email
-        ]
-      }
-    }
-    sku = {
-      name = var.sku,
-      tier = "Fabric"
-    }
-  })
-  tags = var.tags
+resource "azapi_resource" "fab_capacity" {
+  type                      = "Microsoft.Fabric/capacities@2022-07-01-preview"
+  name                      = "fab${var.basename}"
+  parent_id                 = var.resource_group_id
+  location                  = var.location
+  schema_validation_enabled = false
+
+  body = jsonencode({
+    properties = {
+      administration = {
+        members = [
+          var.admin_email
+        ]
+      }
+    }
+    sku = {
+      name = var.sku,
+      tier = "Fabric"
+    }
+  })
+  tags = var.tags
+
+  count = var.module_enabled ? 1 : 0
 }
\ No newline at end of file
diff --git a/terraform/fabric/fabric-capacity/outputs.tf b/terraform/fabric/fabric-capacity/outputs.tf
index e69de29b..52e6d4dd 100644
--- a/terraform/fabric/fabric-capacity/outputs.tf
+++ b/terraform/fabric/fabric-capacity/outputs.tf
@@ -0,0 +1,7 @@
+output "id" {
+  value = (
+    length(azapi_resource.fab_capacity) > 0 ?
+    azapi_resource.fab_capacity[0].id : ""
+  )
+  description = "Resource identifier of the instance of Fabric Capacity."
+}
\ No newline at end of file
diff --git a/terraform/fabric/fabric-capacity/providers.tf b/terraform/fabric/fabric-capacity/providers.tf
index ee853a09..075d6f44 100644
--- a/terraform/fabric/fabric-capacity/providers.tf
+++ b/terraform/fabric/fabric-capacity/providers.tf
@@ -1,7 +1,7 @@
-terraform {
-  required_providers {
-    azapi = {
-      source = "Azure/azapi"
-    }
-  }
+terraform {
+  required_providers {
+    azapi = {
+      source = "Azure/azapi"
+    }
+  }
 }
\ No newline at end of file
diff --git a/terraform/fabric/fabric-capacity/test/fabric_capacity.tf b/terraform/fabric/fabric-capacity/test/fabric_capacity.tf
index b632709a..99b2ed65 100644
--- a/terraform/fabric/fabric-capacity/test/fabric_capacity.tf
+++ b/terraform/fabric/fabric-capacity/test/fabric_capacity.tf
@@ -1,18 +1,18 @@
-module "fabric_capacity" {
-  source            = "../"
-  basename          = random_string.postfix.result
-  resource_group_id = module.local_rg.id
-  location          = var.location
-  sku               = var.sku
-  admin_email       = var.admin_email
-  tags              = {}
-}
-
-# Modules dependencies
-
-module "local_rg" {
-  source   = "../../../resource-group"
-  basename = random_string.postfix.result
-  location = var.location
-  tags     = local.tags
+module "fabric_capacity" {
+  source            = "../"
+  basename          = random_string.postfix.result
+  resource_group_id = module.local_rg.id
+  location          = var.location
+  sku               = var.sku
+  admin_email       = var.admin_email
+  tags              = {}
+}
+
+# Modules dependencies
+
+module "local_rg" {
+  source   = "../../../resource-group"
+  basename = random_string.postfix.result
+  location = var.location
+  tags     = local.tags
 }
\ No newline at end of file
diff --git a/terraform/fabric/fabric-capacity/test/locals.tf b/terraform/fabric/fabric-capacity/test/locals.tf
index cf58c6d3..a0d65226 100644
--- a/terraform/fabric/fabric-capacity/test/locals.tf
+++ b/terraform/fabric/fabric-capacity/test/locals.tf
@@ -1,7 +1,7 @@
-locals {
-  tags = {
-    Project = "Azure/azure-data-labs-modules"
-    Module  = "fabric-capacity"
-    Toolkit = "Terraform"
-  }
+locals {
+  tags = {
+    Project = "Azure/azure-data-labs-modules"
+    Module  = "fabric-capacity"
+    Toolkit = "Terraform"
+  }
 }
\ No newline at end of file
diff --git a/terraform/fabric/fabric-capacity/test/outputs.tf b/terraform/fabric/fabric-capacity/test/outputs.tf
index e69de29b..c275d58d 100644
--- a/terraform/fabric/fabric-capacity/test/outputs.tf
+++ b/terraform/fabric/fabric-capacity/test/outputs.tf
@@ -0,0 +1,3 @@
+output "id" {
+  value = module.fabric_capacity.id
+}
\ No newline at end of file
diff --git a/terraform/fabric/fabric-capacity/test/providers.tf b/terraform/fabric/fabric-capacity/test/providers.tf
index 3ad37f38..77cd034f 100644
--- a/terraform/fabric/fabric-capacity/test/providers.tf
+++ b/terraform/fabric/fabric-capacity/test/providers.tf
@@ -1,25 +1,25 @@
-terraform {
-  backend "azurerm" {
-    resource_group_name  = "rg-adl-terraform-state"
-    storage_account_name = "stadlterraformstate"
-    container_name       = "default"
-    key                  = "fabriccapacity.terraform.tfstate"
-  }
-
-  required_providers {
-    azurerm = {
-      source  = "hashicorp/azurerm"
-      version = "= 3.53.0"
-    }
-    azapi = {
-      source = "azure/azapi"
-    }
-  }
-}
-
-provider "azurerm" {
-  features {}
-}
-
-provider "azapi" {
+terraform {
+  # backend "azurerm" {
+  #   resource_group_name  = "rg-adl-terraform-state"
+  #   storage_account_name = "stadlterraformstate"
+  #   container_name       = "default"
+  #   key                  = "fabriccapacity.terraform.tfstate"
+  # }
+
+  required_providers {
+    azurerm = {
+      source  = "hashicorp/azurerm"
+      version = "= 3.53.0"
+    }
+    azapi = {
+      source = "azure/azapi"
+    }
+  }
+}
+
+provider "azurerm" {
+  features {}
+}
+
+provider "azapi" {
 }
\ No newline at end of file
diff --git a/terraform/fabric/fabric-capacity/test/variables.tf b/terraform/fabric/fabric-capacity/test/variables.tf
index e02145e4..0f354ecc 100644
--- a/terraform/fabric/fabric-capacity/test/variables.tf
+++ b/terraform/fabric/fabric-capacity/test/variables.tf
@@ -1,20 +1,20 @@
-resource "random_string" "postfix" {
-  length  = 8
-  special = false
-  upper   = false
-}
-
-variable "location" {
-  type    = string
-  default = "North Europe"
-}
-
-variable "sku" {
-  type    = string
-  default = "F2"
-}
-
-variable "admin_email" {
-  type    = string
-  default = "aimurg@microsoft.com"
+resource "random_string" "postfix" {
+  length  = 8
+  special = false
+  upper   = false
+}
+
+variable "location" {
+  type    = string
+  default = "North Europe"
+}
+
+variable "sku" {
+  type    = string
+  default = "F2"
+}
+
+variable "admin_email" {
+  type    = string
+  default = "aimurg@microsoft.com"
 }
\ No newline at end of file
diff --git a/terraform/fabric/fabric-capacity/variables.tf b/terraform/fabric/fabric-capacity/variables.tf
index 53c44032..366e1f4e 100644
--- a/terraform/fabric/fabric-capacity/variables.tf
+++ b/terraform/fabric/fabric-capacity/variables.tf
@@ -1,35 +1,41 @@
-variable "basename" {
-  type        = string
-  description = "Basename of the module."
-  validation {
-    condition     = can(regex("^[-0-9a-zA-Z]{1,21}$", var.basename)) && can(regex("[0-9a-zA-Z]+$", var.basename))
-    error_message = "The name must be between 1 and 21 characters, can contain only letters, numbers, and hyphens. Must end with a letter or number. Cannot contain consecutive hyphens."
-  }
-}
-
-variable "resource_group_id" {
-  type        = string
-  description = "Resource group id."
-}
-
-variable "location" {
-  type        = string
-  description = "Location of the resource group."
-}
-
-variable "tags" {
-  type        = map(string)
-  default     = {}
-  description = "A mapping of tags which should be assigned to the deployed resource."
-}
-
-variable "sku" {
-  type        = string
-  default     = "F2"
-  description = ""
-}
-
-variable "admin_email" {
-  type        = string
-  description = ""
+variable "basename" {
+  type        = string
+  description = "Basename of the module."
+  validation {
+    condition     = can(regex("^[-0-9a-zA-Z]{1,21}$", var.basename)) && can(regex("[0-9a-zA-Z]+$", var.basename))
+    error_message = "The name must be between 1 and 21 characters, can contain only letters, numbers, and hyphens. Must end with a letter or number. Cannot contain consecutive hyphens."
+  }
+}
+
+variable "resource_group_id" {
+  type        = string
+  description = "Resource group id."
+}
+
+variable "location" {
+  type        = string
+  description = "Location of the resource group."
+}
+
+variable "tags" {
+  type        = map(string)
+  default     = {}
+  description = "A mapping of tags which should be assigned to the deployed resource."
+}
+
+variable "module_enabled" {
+  type        = bool
+  description = "Variable to enable or disable the module."
+  default     = true
+}
+
+variable "sku" {
+  type        = string
+  default     = "F2"
+  description = "SKU name"
+}
+
+variable "admin_email" {
+  type        = string
+  description = "Fabric administrator email"
 }
\ No newline at end of file