Amazon offers some excellent cloud computing services, but being self-managed at the basic level it can be a headache to diagnose and fix errors. I recently encountered a similar error where all my attempts to login into the EC2 instance failed with cloud-init: runcmd Caught exception reading instance data: http://169.254.169.254/2009-04-04/meta-data/security-groups
as shown in the Amazon EC2 instance console system log below.
![Amazon EC2 Console With Error](http://www.megaleecher.net/sites/default/files/images/amazon-ec2-error-169.254.169.2-security-groups.png)
While there is no information or solution available, it seems this error is related to some sort of communication/hardware node failure which hosts the security meta-data policy - failing to read which no connections are allowed by the instance.
A temporary solution which worked for me was to Reboot the affected instance, things worked perfectly after I rebooted my instance.
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