State Guide • • 10 min read

Telangana Data Center Power Tariff 2026: Complete Breakdown

Why Hyderabad offers India's lowest data center power costs. Complete TSDISCOM tariff analysis including ₹1.50 off-peak rebate and hyperscale investment drivers.

Telangana has emerged as India's most cost-competitive data center market, with Hyderabad attracting major investments from AWS, Microsoft, Google, and Indian operators like CtrlS and Yotta. The state's aggressive tariff structure—featuring India's lowest base rates and most generous off-peak rebates— makes it the clear leader for power-sensitive deployments.

Quick Reference: Telangana HT Industrial Tariff

Component Rate (FY 2025-26)
Base Energy Rate ₹6.60/kWh (Lowest in India)
Demand Charge ₹320/kVA/month (Lowest in India)
Fuel Adjustment Charge ₹0.08/unit
Electricity Duty 5%
Power Factor Threshold 0.90
Why Telangana Wins: At ₹6.60/kWh base rate + ₹320/kVA demand charge, Telangana offers 20% lower energy costs and 47% lower demand charges compared to Tamil Nadu. For a 500-rack hyperscale facility, this translates to ₹2-3 crore annual savings.

Time-of-Day (ToD) Tariff Structure

Telangana uses an absolute adder/rebate system rather than percentages, providing clear and predictable ToD adjustments.

Time Slot Hours Adjustment Effective Rate
Off-Peak Night 22:00 - 06:00 -₹1.50/unit ₹5.10/kWh
Normal Morning 06:00 - 09:00 Base Rate ₹6.60/kWh
Normal Day 09:00 - 17:00 Base Rate ₹6.60/kWh
Peak 17:00 - 22:00 +₹1.00/unit ₹7.60/kWh
Night Rate Champion: Telangana's ₹5.10/kWh effective night rate (22:00-06:00) is India's absolute lowest. For workloads that can run during these 8 hours, the savings are substantial—23% below the already-low base rate.

Why Hyperscalers Choose Hyderabad

Major investments in Telangana include:

  • AWS: Multiple availability zones in Hyderabad region
  • Microsoft Azure: Hyderabad data center region
  • Google Cloud: Planned Hyderabad region
  • CtrlS: Largest tier-4 data center in Asia (Hyderabad)
  • Yotta: 20 MW+ facility in Hyderabad

The combination of lowest power costs, proactive state policy, and available land makes Hyderabad the default choice for large-scale deployments.

State Incentive Programs

Telangana's Data Center Policy offers additional benefits:

  • Power tariff subsidy: Additional rebates for anchor investments (>50 MW)
  • Land allocation: Single-window clearance for DC projects
  • Stamp duty exemption: Reduced registration costs
  • Capital subsidy: 25% subsidy on fixed capital investment (capped)
  • Employment incentive: Reimbursement for local hiring

Peak Hour Analysis

Telangana's peak window (17:00-22:00) is shorter than other states, and the +₹1.00/unit surcharge is relatively modest:

State Peak Hours Peak Rate Peak Premium
Telangana 5 hours ₹7.60/kWh +15%
Maharashtra 7 hours ₹10.25/kWh +25%
Tamil Nadu 8 hours ₹9.375/kWh +25%
Karnataka 6 hours ₹8.28/kWh +20%

Load Optimization Strategy

To maximize Telangana's cost advantages:

  1. Night-shift processing: Route batch jobs and backups to 22:00-06:00 window
  2. Cooling optimization: Pre-cool during off-peak, coast through peak
  3. Contract structure: Negotiate tenant contracts with off-peak incentives
  4. Storage charging: If using battery, charge during ₹5.10 window

Sample Hyperscale Economics

For a 200-rack hyperscale facility consuming 720 MWh/month:

Consumption Pattern Monthly Energy Cost Savings vs Maharashtra
Standard (35% peak, 35% normal, 30% off-peak) ₹45.7 lakhs ₹14.1 lakhs (24%)
Optimized (25% peak, 35% normal, 40% off-peak) ₹43.5 lakhs ₹16.3 lakhs (27%)
Night-heavy (20% peak, 30% normal, 50% off-peak) ₹41.4 lakhs ₹18.4 lakhs (31%)

Annual savings potential: ₹1.7-2.2 crores for optimized operations vs Maharashtra.

Infrastructure Considerations

While tariffs are attractive, operators should consider:

  • Connectivity: Hyderabad has good domestic connectivity but fewer submarine cable options than Chennai/Mumbai
  • Grid reliability: Generally stable, but some industrial areas need backup planning
  • Water: Better availability than Bengaluru, but still requires planning
  • Talent: Strong IT workforce, growing data center operations expertise

Try Our Calculator

Use our ToD Power Tariff Calculator to estimate your Telangana data center electricity costs and compare against other states.

Sources

  • TSERC Tariff Order FY 2025-26
  • TSDISCOM HT Industrial Schedule
  • Telangana Data Center Policy 2024
  • Telangana Electricity Duty Rules

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