I was playing around with this a while ago, using cloud-init and virt-install. But I found it to be quite cumbersome if you don't have some kind of metadata service that can provide cloud-init with the user-data, ie. not using the nocloud provider.

I started looking at this mock EC2 metadata service, but never did anything with it: https://github.com/sjjf/md_server

Ninja-edit: It seems like virt-install rencently abstracted the whole NoCloud-provider, this changes a lot of things: https://blog.wikichoon.com/2020/09/virt-install-cloud-init.h...