diff --git a/src/cloudai/schema/test_template/nemo_launcher/slurm_command_gen_strategy.py b/src/cloudai/schema/test_template/nemo_launcher/slurm_command_gen_strategy.py
index 80ac228d..f8167d63 100644
--- a/src/cloudai/schema/test_template/nemo_launcher/slurm_command_gen_strategy.py
+++ b/src/cloudai/schema/test_template/nemo_launcher/slurm_command_gen_strategy.py
@@ -135,18 +135,9 @@ def _set_node_config(self, nodes: List[str], num_nodes: int) -> None:
         self.final_cmd_args["training.trainer.num_nodes"] = str(len(nodes)) if nodes else num_nodes
 
     def _validate_data_config(self) -> None:
-        """Validate the data directory and prefix configuration for non-mock environments."""
+        """Validate the data prefix configuration for non-mock environments."""
         if self.final_cmd_args.get("training.model.data.data_impl") != "mock":
-            data_dir = self.final_cmd_args.get("data_dir")
             data_prefix = self.final_cmd_args.get("training.model.data.data_prefix")
-
-            if not data_dir or data_dir == "~":
-                raise ValueError(
-                    "The 'data_dir' field of the NeMo launcher test contains an invalid placeholder '~'. "
-                    "Please provide a valid path to the dataset in the test schema TOML file. "
-                    "The 'data_dir' field must point to an actual dataset location."
-                )
-
             if data_prefix == "[]":
                 raise ValueError(
                     "The 'data_prefix' field of the NeMo launcher test is missing or empty. "
@@ -198,10 +189,7 @@ def _generate_cmd_args_str(self, args: Dict[str, str], nodes: List[str]) -> str:
                     value = f"\\'{value}\\'"
                 env_var_str_parts.append(f"+{key}={value}")
             else:
-                if value == "~":
-                    cmd_arg_str_parts.append(f"~{key}=null")
-                else:
-                    cmd_arg_str_parts.append(f"{key}={value}")
+                cmd_arg_str_parts.append(f"{key}={value}")
 
         if nodes:
             nodes_str = ",".join(nodes)
diff --git a/src/cloudai/test_definitions/nemo_launcher.py b/src/cloudai/test_definitions/nemo_launcher.py
index c6214c89..86baff1b 100644
--- a/src/cloudai/test_definitions/nemo_launcher.py
+++ b/src/cloudai/test_definitions/nemo_launcher.py
@@ -97,7 +97,6 @@ class NeMoLauncherCmdArgs(CmdArgs):
     repository_commit_hash: str = "cf411a9ede3b466677df8ee672bcc6c396e71e1a"
     docker_image_url: str = "nvcr.io/nvidia/nemo:24.01.01"
     stages: str = '["training"]'
-    data_dir: str = "~"
     numa_mapping: NumaMapping = Field(default_factory=NumaMapping)
     cluster: Cluster = Field(default_factory=Cluster)
     training: Training = Field(default_factory=Training)
diff --git a/tests/slurm_command_gen_strategy/test_nemo_launcher.py b/tests/slurm_command_gen_strategy/test_nemo_launcher.py
index ccb07d17..a1d286b8 100644
--- a/tests/slurm_command_gen_strategy/test_nemo_launcher.py
+++ b/tests/slurm_command_gen_strategy/test_nemo_launcher.py
@@ -135,21 +135,13 @@ def test_gpus_per_node_value(self, nemo_cmd_gen: NeMoLauncherSlurmCommandGenStra
 
         assert "cluster.gpus_per_node=null" in cmd
 
-    def test_argument_with_tilde_value(self, nemo_cmd_gen: NeMoLauncherSlurmCommandGenStrategy, nemo_test_run: TestRun):
-        tdef: NeMoLauncherTestDefinition = cast(NeMoLauncherTestDefinition, nemo_test_run.test.test_definition)
-        tdef.cmd_args.training.model.micro_batch_size = "~"  # type: ignore
-
-        cmd = nemo_cmd_gen.gen_exec_command(nemo_test_run)
-        assert "~training.model.micro_batch_size=null" in cmd
-
     def test_data_impl_mock_skips_checks(
         self, nemo_cmd_gen: NeMoLauncherSlurmCommandGenStrategy, nemo_test_run: TestRun
     ):
         tdef: NeMoLauncherTestDefinition = cast(NeMoLauncherTestDefinition, nemo_test_run.test.test_definition)
-        tdef.cmd_args.data_dir = "DATA_DIR"
-
+        tdef.extra_cmd_args = {"data_dir": "DATA_DIR"}
         cmd = nemo_cmd_gen.gen_exec_command(nemo_test_run)
-        assert "data_dir" in cmd
+        assert "data_dir=DATA_DIR" in cmd
 
     def test_data_dir_and_data_prefix_validation(
         self, nemo_cmd_gen: NeMoLauncherSlurmCommandGenStrategy, nemo_test_run: TestRun
@@ -157,18 +149,8 @@ def test_data_dir_and_data_prefix_validation(
         tdef: NeMoLauncherTestDefinition = cast(NeMoLauncherTestDefinition, nemo_test_run.test.test_definition)
         tdef.cmd_args.training.model.data.data_impl = "not_mock"
         tdef.cmd_args.training.model.data.data_prefix = "[]"
+        tdef.extra_cmd_args = {"data_dir": "DATA_DIR"}
 
-        with pytest.raises(
-            ValueError,
-            match=(
-                "The 'data_dir' field of the NeMo launcher test contains an invalid placeholder '~'. "
-                "Please provide a valid path to the dataset in the test schema TOML file. "
-                "The 'data_dir' field must point to an actual dataset location."
-            ),
-        ):
-            nemo_cmd_gen.gen_exec_command(nemo_test_run)
-
-        tdef.cmd_args.data_dir = "/fake/data_dir"
         with pytest.raises(ValueError, match="The 'data_prefix' field of the NeMo launcher test is missing or empty."):
             nemo_cmd_gen.gen_exec_command(nemo_test_run)