EBS-backed vs Instance Store-backed instances.

In Simple Words:

• EBS (Elastic Block Store): Network-attached virtual hard drive. Data persists when the instance is stopped; supports point-in-time snapshots.
• Instance Store (Ephemeral): Physical NVMe SSD directly attached to the host server. Blazingly fast I/O, but data is permanently lost when the instance is stopped.

# GP3 EBS volume with custom IOPS and Throughput:
resource "aws_ebs_volume" "database_data" {
  availability_zone = "us-east-1a"
  size              = 500 # GB
  type              = "gp3"
  iops              = 10000
  throughput        = 500 # MB/s
  encrypted         = true
}