diff --git a/cloud/rackspace/rax.py b/cloud/rackspace/rax.py
index a859e7a7bb3..80e46b0237c 100644
--- a/cloud/rackspace/rax.py
+++ b/cloud/rackspace/rax.py
@@ -287,6 +287,7 @@ def create(module, names=[], flavor=None, image=None, meta={}, key_name=None,
 
     if user_data and os.path.isfile(os.path.expanduser('user_data')):
         try:
+            user_data = os.path.expanduser('user_data')
             f = open(user_data)
             user_data = f.read()
             f.close()