OPC Energy power contract could reach 460 MW for Israeli data centres

OPC Energy Ltd., which runs power plants in Israel and, through CPV Group, in the US, has extended and enlarged an electricity contract with a customer in Israel's data-centre sector, according to its board of directors' report for the nine months to 30 September 2026. Its parent, Singapore-based Kenon Holdings, furnished the report, in English translation, to the US Securities and Exchange Commission on 10 November 2026.

The supply agreement

In May 2026, according to the report, OPC Israel amended a power purchase agreement it already held with an existing customer. The change lengthens the contract and expands its capacity, which could rise gradually to about 460 MW over the coming years. The electricity is intended, among other uses, for data centres the customer runs or plans to run. The extended term is nineteen years, with early termination and exit arrangements, and the agreement also covers sales of a capped quantity of green certificates.

OPC cautions that the capacity it will actually sell is uncertain. It depends on whether and when the data centres operate and how much power the customer ends up using, which the company says is beyond its control and, as far as it knows, still hinges on preconditions not yet met.

A data-centre site beside the Rotem plant

OPC is also developing Rotem 2, the land next to its Rotem power plant, as a data-centre site with an estimated size of 120 to 200 MW, linked to the grid, to the Rotem plant, or both. Rotem 2 is seeking a NOGA connection, advancing an urban planning scheme and pursuing further approvals. OPC says the outcome is not certain.

OPC Israel is also holding talks and feasibility studies on a possible long-term framework for jointly developing power generation and supply for Israeli data-centre projects, including shared new power plants and arrangements near its existing plants. The report says this would still need negotiations, detailed agreements, feasibility work and, where required, regulatory approvals, and is not assured.

The grid-connection backdrop

The report sets these moves against action by Israel's Electricity Authority. In July 2026 the authority issued a temporary order halting, for 140 days, the system operator's review of and replies to connection requests from data centres of 8 MW or more. The report cites figures from that decision: in about two months, new information requests covering roughly 19 GW reached the system operator, on top of about 8 GW already waiting, for total demand near 27 GW.

In October 2026, the report says, the authority issued a draft decision for public comment. Among other measures, it would add a dedicated quota as large as 1,000 MW alongside about 2,000 MW already approved, cap each data-centre connection at 200 MW, and let the system operator cut supply to data centres, including connected ones, for up to 200 hours a year. No final decision had been made when the report was approved.

OPC adds that, especially at this early stage, it is not certain the data-centre projects or the power plants meant for them will be built.