diff --git a/upup/pkg/fi/cloudup/terraform/hcl2.go b/upup/pkg/fi/cloudup/terraform/hcl2.go
index 1c606d709b2a4..8656132176870 100644
--- a/upup/pkg/fi/cloudup/terraform/hcl2.go
+++ b/upup/pkg/fi/cloudup/terraform/hcl2.go
@@ -106,7 +106,7 @@ func writeLiteral(body *hclwrite.Body, key string, literal *Literal) {
 		tokens := hclwrite.Tokens{
 			{
 				Type:  hclsyntax.TokenIdent,
-				Bytes: []byte(fmt.Sprintf("file(%q)", literal.FilePath)),
+				Bytes: []byte(fmt.Sprintf("%v(%q)", literal.FileFn, literal.FilePath)),
 			},
 		}
 		body.SetAttributeRaw(key, tokens)
@@ -193,7 +193,7 @@ func writeMap(body *hclwrite.Body, key string, values map[string]cty.Value) {
 			// For maps of literals we currently only support file references
 			// If we ever need to support a map of strings to resource property references that can be added here
 			if literal.FilePath != "" {
-				tokens = append(tokens, &hclwrite.Token{Type: hclsyntax.TokenIdent, Bytes: []byte(fmt.Sprintf("file(%q)", literal.FilePath))})
+				tokens = append(tokens, &hclwrite.Token{Type: hclsyntax.TokenIdent, Bytes: []byte(fmt.Sprintf("%v(%q)", literal.FileFn, literal.FilePath))})
 			} else if literal.Value != "" {
 				tokens = append(tokens, []*hclwrite.Token{
 					{Type: hclsyntax.TokenOQuote, Bytes: []byte{'"'}, SpacesBefore: 1},
diff --git a/upup/pkg/fi/cloudup/terraform/literal.go b/upup/pkg/fi/cloudup/terraform/literal.go
index 75dae890d1b1d..7c49083c432c2 100644
--- a/upup/pkg/fi/cloudup/terraform/literal.go
+++ b/upup/pkg/fi/cloudup/terraform/literal.go
@@ -24,6 +24,13 @@ import (
 	"k8s.io/klog"
 )
 
+type fileFn string
+
+const (
+	fileFnFile       fileFn = "file"
+	fileFnFileBase64 fileFn = "filebase64"
+)
+
 // Literal represents a literal in terraform syntax
 type Literal struct {
 	// Value is only used in terraform 0.11 and represents the literal string to use as a value.
@@ -37,8 +44,10 @@ type Literal struct {
 	ResourceName string `cty:"resource_name"`
 	// ResourceProp represents the property of a resource in a literal reference
 	ResourceProp string `cty:"resource_prop"`
-	// FilePath represents the path for a file() reference
+	// FilePath represents the path for a file reference
 	FilePath string `cty:"file_path"`
+	// FileFn represents the function used to reference the file
+	FileFn fileFn `cty:"file_fn"`
 }
 
 var _ json.Marshaler = &Literal{}
@@ -48,13 +57,16 @@ func (l *Literal) MarshalJSON() ([]byte, error) {
 }
 
 func LiteralFileExpression(modulePath string, base64 bool) *Literal {
-	fn := "file"
+	fn := fileFnFile
 	if base64 {
-		fn = "filebase64"
+		fn = fileFnFileBase64
 	}
 	return &Literal{
-		Value:    fmt.Sprintf("${%v(%q)}", fn, modulePath),
+		// file() is hardcoded here because this field is
+		// used for Terraform 0.11 which does not have filebase64()
+		Value:    fmt.Sprintf("${file(%q)}", modulePath),
 		FilePath: modulePath,
+		FileFn:   fn,
 	}
 }