Any source on learning how to setup a dev enviroment?

I need to set up a reproducible dev environment for ~7 junior engineers using Kafka, Spark, S3, and data pipelines. It should run both locally (offline) and on AWS. Given limited SWE experience, so please do correct me, is a Docker Compose–based setup on individual EC2 instances (for isolation) the right approach? Looking for advice/tips or someone to point to the right source of info. Extra question: Do we need terraform for this? <!-- SC_ON --