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I see that this gets added into the yaml when i create a cluster manually:

machineSelectorConfig:
      - config:
          cloud-provider-config: |-
            cloud_provider:
                name: openstack
                openstackCloudProvider:
                  global:
                    username: xxxxxxxxxxxxxx
                    password: xxxxxxxxxxxxxx
                    auth-url: <https://1.2.3.4/identity/v3>
                    tenant-id: xxxxxxxxxxxxxx
          cloud-provider-name: external

How and where do i add that in my rke_config in terraform?

I think you were using

rancher2_cluster

resource documentation instead of

rancher2_cluster_v2

. Once you go to https://registry.terraform.io/providers/rancher/rancher2/latest/docs/resources/cluster_v2 you will see that there is no

cloud_provider

argument, but you need to put your config under

machine_selector_config

You will find an example to serve as a reference once you search for

machine_selector_config

in that page.

thank you @lemon-midnight-46796!