Infrastructure as Code (IaC) is the process of managing and provisioning computer data centers through machine-readable definition files, rather than physical hardware configuration or interactive configuration tools.
A typical tool for IaC is terraform which allows you to define a set of source files in a declarative manner ( you define the desired end state and the system alters itself to mirror what you declare ) to build virtual resources in some cloud provider ( hetzner, azure, google cloud,aws )
You can use IaC to dynamically create, modify or destroy virtual machines, database servers, networks together with all the necessary DevOps related definitions to manage DNS, TLS, firewalls, load balancers, api gateways, reverse proxies etc. This allows software engineers to synthesize a compute platform where they can execute their application code.