diff --git a/test/e2e_node/jenkins/coreos-init.json b/test/e2e_node/jenkins/coreos-init.json
new file mode 100644
index 00000000000..24e1fb96534
--- /dev/null
+++ b/test/e2e_node/jenkins/coreos-init.json
@@ -0,0 +1,29 @@
+{
+  "ignition":{"version": "2.0.0"},
+  "systemd": {
+    "units": [{
+      "name": "update-engine.service",
+      "mask": true
+    },
+    {
+      "name": "locksmithd.service",
+      "mask": true
+    },
+    {
+      "name": "docker.service",
+      "dropins": [{
+        "name": "10-disable-systemd-cgroup-driver.conf",
+        "contents": "[Service]\nCPUAccounting=yes\nMemoryAccounting=yes\nEnvironment=\"DOCKER_CGROUPS=\""
+      }]
+    }]
+  },
+  "passwd": {
+    "users": [{
+      "name": "jenkins",
+      "create": {
+        "groups": ["docker", "sudo"]
+      }
+    }]
+  }
+}
+
diff --git a/test/e2e_node/jenkins/coreos-init.yaml b/test/e2e_node/jenkins/coreos-init.yaml
deleted file mode 100644
index d9029c3cb5e..00000000000
--- a/test/e2e_node/jenkins/coreos-init.yaml
+++ /dev/null
@@ -1,36 +0,0 @@
-#cloud-config
-
-users:
-  - name: "jenkins"
-    groups: 
-      - "docker"
-      - "sudo"
-
-
-coreos:
-  units:
-    - name: "docker.service"
-      enable: true
-      drop-ins:
-        - name: 10-disable-systemd-cgroup-driver.conf
-          content: |
-            [Service]
-            CPUAccounting=yes
-            MemoryAccounting=yes
-            # Temporary, remove after https://github.com/coreos/bugs/issues/1435 is resolved
-            Environment="DOCKER_CGROUPS="
-    - name: "update-engine.service"
-      mask: true
-    - name: "locksmithd.service"
-      mask: true
-    - name: "node-e2e-test-setup.service"
-      command: "start"
-      content: |
-        [Unit]
-        Description=Setup a vanilla CoreOS image for use by Node e2e
-        WantedBy=multi-user.target
-        [Service]
-        Type=oneshot
-        RemainAfterExit=yes
-        # chain `ExecStartPre`'s here to do any setup
-        ExecStart=/bin/true
diff --git a/test/e2e_node/jenkins/image-config.yaml b/test/e2e_node/jenkins/image-config.yaml
index eca1e88943e..f9840501d3f 100644
--- a/test/e2e_node/jenkins/image-config.yaml
+++ b/test/e2e_node/jenkins/image-config.yaml
@@ -11,7 +11,7 @@ images:
   coreos-alpha:
     image: coreos-alpha-1122-0-0-v20160727
     project: coreos-cloud
-    metadata: "user-data<test/e2e_node/jenkins/coreos-init.yaml"
+    metadata: "user-data<test/e2e_node/jenkins/coreos-init.json"
   containervm:
     image: e2e-node-containervm-v20160321-image
     project: kubernetes-node-e2e-images