The performance of absolute added correlative coding (AACC) modulation format with direct detection has been numerically and analytically reported, targeting metro data center interconnects. Hereby, the focus lies on the performance of the bit error rate, noise contributions, spectral efficiency, and chromatic dispersion tolerance. The signal space model of AACC, where the average electrical and optical power expressions are derived for the first time, is also delineated. The proposed modulation format was also compared to other well-known signaling, such as on-off-keying (OOK) and four-level pulse–amplitude modulation, at the same bit rate in a directly modulated vertical-cavity surface-emitting laser-based transmission system. The comparison results show a clear advantage of AACC in achieving longer fiber delivery distance due to the higher dispersion tolerance.