Quantum information processing often uses systems with dipolar interactions. Here a nuclear spin-based quantum simulator is used to study the spreading of information in such a dipolar-coupled system. While the information spreads with no apparent limits in the case of ideal dipolar couplings, additional perturbations limit the spreading, leading to localization. In previous work [Phys. Rev. Lett. 104, 230403 (2010)], it was found that the system size reaches a dynamic equilibrium that decreases with the square of the perturbation strength. This work examines the impact of a disordered Hamiltonian with dipolar interactions. It shows that the expansion of the cluster of spins freezes in the presence of large disorder, reminiscent of Anderson localization of non-interacting waves in a disordered potential.