The AWS APIs use an authentication mechanism that involves the client creating a signature representing the request. This signature includes a timestamp of the time the request is being made, as a measure to reduce the risk of replay attacks.
The signature mechanism assumes that the client and server both have somewhat-accurate system clocks, such that the client's time is not more than 15 minutes divergent from the server's.
So it's important that any system where AWS APIs are used -- whether via Terraform or otherwise -- has a reasonably accurate system clock. Virtual machines often suffer from system clock drift for various reasons, so it's a good idea to run ntpd
on most virtual machines to prevent their system clocks from drifting too much.