Karnataka Data Center Power Tariff 2026: Complete Breakdown

Karnataka, home to India's tech capital Bengaluru, is the clear cost leader for data center power in February 2026. KERC's simplified flat-rate structure, lowest demand charges, and symmetrical ToD model make it the most attractive state for power-sensitive deployments.

Quick Reference: Karnataka HT Industrial Tariff (FY 2025-26)

Component	Rate	Notes
Base Energy Rate	₹6.60/kWh	Flat rate (slab system abolished)
Demand Charge	₹350/kVA/month	Lowest among major DC states
FPPCA (Feb 2026)	₹0.20-0.35/unit	Moderate (good hydro availability)
Electricity Duty	6%
Power Factor Threshold	0.90	Standard HT threshold (LT is 0.85)

 Cost Leader: At an effective rate of ~₹8.50/kWh (all-in for 24x7 operations),
    Karnataka is ₹2-3/unit cheaper than Tamil Nadu and Maharashtra. For a 200-rack facility, this
    translates to ₹20-30 lakhs/month in savings.

Time-of-Day (ToD) Tariff Structure

Karnataka employs a symmetrical ±₹1.00 absolute adder model — the simplest and most predictable ToD structure among major DC states.

Time Slot	Hours	Adjustment	Effective Rate
Morning Normal	06:00 - 10:00	Base Rate	₹6.60/kWh
Day Normal	10:00 - 18:00	Base Rate	₹6.60/kWh
Evening Peak	18:00 - 22:00	+₹1.00/kWh	₹7.60/kWh
Night Off-Peak	22:00 - 06:00	-₹1.00/kWh	₹5.60/kWh

 ToD-Neutral for 24x7: The symmetry (±₹1.00) with equal 4-hour peak (18-22) and
    8-hour off-peak (22-06) means data centers with a flat load profile are net beneficiaries
of the ToD structure — the night rebate hours are double the peak surcharge hours.

Key Advantage: No Morning Peak

Unlike Maharashtra (morning peak 09-12), Tamil Nadu (morning peak 06-10), and Telangana (morning peak 06-10), Karnataka has no morning peak surcharge. The entire 06:00-18:00 window is at base rate. This is a significant advantage for data centers that see morning demand spikes from business hours.

Open Access Risk: Additional Surcharge Petition

Regulatory Risk: BESCOM has filed a petition for an Additional Surcharge of ₹1.65/unit to recover stranded PPA costs from industries switching to Open Access. Hearings are ongoing in Feb 2026. If approved, this would virtually eliminate the OA arbitrage, forcing industries back to BESCOM supply.

Cost Comparison: Why Karnataka Wins

For a standard 1,000 kVA facility consuming 300 MWh/month (3-shift continuous operation, Feb 2026):

State	Fixed Cost (Demand)	Energy Cost	Estimated Monthly Bill	Effective Rate
Karnataka	₹3,50,000	₹19,80,000	~₹25.5 L	~₹8.50/unit
Maharashtra	₹6,00,000	₹26,04,000	~₹34.5 L	~₹11.50/unit
Telangana	₹5,00,000	₹22,95,000	~₹30.5 L	~₹10.16/unit
Tamil Nadu	₹6,08,000	₹22,50,000	~₹33.8 L	~₹11.26/unit

Karnataka saves ₹6-8 lakhs/month vs other states for the same facility profile.

Simplified Billing: Flat Rate

KERC has abolished the previous slab system. A single flat rate of ₹6.60/kWh applies to all consumption levels. This simplifies billing and rewards scale — large consumers don't face higher marginal rates.

Power Factor Advantage

Karnataka's 0.90 PF threshold (same as other states for HT consumers) still offers advantages through kWh billing:

kWh billing means PF doesn't inflate billed units (unlike MH/TS kVAh billing)
PF penalty is a separate line item at ₹0.15/kWh per 0.01 below threshold
Simpler to manage than the implicit kVAh penalty in Maharashtra

Bengaluru Market Dynamics

While tariffs are attractive, Bengaluru-specific considerations include:

Land scarcity: Premium locations in Whitefield and Electronic City command high prices
Water availability: Bengaluru's water crisis affects cooling infrastructure planning
Grid reliability: Some industrial areas need robust backup planning
Fiber connectivity: Strong domestic connectivity, growing international routes

Renewable Energy Options

Karnataka is India's solar deployment leader:

Open access solar: Competitive wheeling charges (but watch the Additional Surcharge risk)
Captive solar: Land available in peripheral areas at reasonable rates
Wind power: Group captive arrangements available

Try Our Calculator

Use our ToD Power Tariff Calculator to estimate your Karnataka data center electricity costs with your specific consumption pattern.

Compare Other States

Maharashtra Tariff Guide — kVAh billing, aggressive night rebate, ₹600/kVA demand
Tamil Nadu Tariff Guide — Dual peak windows, 25% surcharge, 90% demand ratchet
Telangana Tariff Guide — Winter rebate suspension, kVAh billing impact

Sources

KERC MYT Tariff Order 2025
BESCOM HT-2(a) Industrial Schedule
Karnataka Electricity Duty Act
BESCOM Additional Surcharge Petition (pending)