Blocks of type "cloud" are not expected here for integrating with Terraform Cloud

I'm following this documentation in migrating the local state to be integrated with Terraform Cloud.

https://learn.hashicorp.com/tutorials/terraform/cloud-migrate

It is fairly straightforward, I just need to copy this code:

terraform {
  required_version = ">= 1.1.0"
  required_providers {
    random = {
      source  = "hashicorp/random"
      version = "3.0.1"
    }
  }
  cloud {
    organization = "<ORG_NAME>"
    workspaces {
      name = "Example-Workspace"
    }
  }
}

The problem is that my code below has the same code with above

terraform {
  required_version = ">= 0.14.9"
  required_providers {
    aws = {
      source = "hashicorp/aws"
      version = "~> 3.27"
    }
  }
  cloud {
    organization = "ORG"

    workspaces {
      name = "ORG_WORKSPACE"
    }
  }
}

But it is returning an error:

Blocks of type "cloud" are not expected here.

Some notes:

1. I put the code in a file called providers.tf.
2. I have done some other code and did a terraform apply, thus returning tfstate.
3. I did a login to Terraform Cloud using terraform login with my credentials.
4. When I try to terraform init, the error occurs.

Any help would be much appreciated. Thank you!