diff --git a/playbooks/deploy-dynamic.yaml b/playbooks/deploy-dynamic.yaml
index aa027b408..d16b46bc1 100644
--- a/playbooks/deploy-dynamic.yaml
+++ b/playbooks/deploy-dynamic.yaml
@@ -1,4 +1,9 @@
 ---
+- hosts: localhost
+  name: "Gather facts on localhost"
+  become: no
+  gather_facts: yes
+
 - hosts: baremetal
   name: "Create configuration drive files and deploy machines from inventory"
   become: no
diff --git a/playbooks/enroll-dynamic.yaml b/playbooks/enroll-dynamic.yaml
index 9bad99e62..a970695b1 100644
--- a/playbooks/enroll-dynamic.yaml
+++ b/playbooks/enroll-dynamic.yaml
@@ -1,4 +1,9 @@
 ---
+- hosts: localhost
+  name: "Gather facts on localhost"
+  become: no
+  gather_facts: yes
+
 - hosts: baremetal
   name: "Enroll hardware from inventory into Ironic"
   become: no
diff --git a/playbooks/roles/bifrost-cloud-config/defaults/main.yml b/playbooks/roles/bifrost-cloud-config/defaults/main.yml
index 35a0ede0a..660b4abcf 100644
--- a/playbooks/roles/bifrost-cloud-config/defaults/main.yml
+++ b/playbooks/roles/bifrost-cloud-config/defaults/main.yml
@@ -3,7 +3,10 @@ noauth_mode: true
 
 network_interface: "virbr0"
 ans_network_interface: "{{ network_interface | replace('-', '_') }}"
-internal_ip: "{{ hostvars[inventory_hostname]['ansible_' + ans_network_interface]['ipv4']['address'] }}"
+# NOTE(dtantsur): dynamic playbooks are run on bare metal hosts, not on
+# localhost, and the interface fact may not be available for them.
+ans_interface_host: "{{ groups['target'][0] if 'target' in groups else '127.0.0.1' }}"
+internal_ip: "{{ hostvars[ans_interface_host]['ansible_' + ans_network_interface]['ipv4']['address'] }}"
 
 enable_tls: false
 api_protocol: "{{ 'https' if enable_tls | bool else 'http' }}"