Power Distribution Transformers is fitted with multiple outputs designed to distribute electrical power. In a data centre, all the distributed power loads are connected through a non linear power source, due to which HARMONICS generation is unavoidable. These generated Harmonics are flow back and directly effects the mains power source, which a UPS. The effect of harmonics derates the capacity of UPS. Hence 100% utilization of UPS capacity becomes wasted. The effect of harmonics also creates much heat in the transformers of UPS. To eliminate these direct effects on UPS, KFactor Transformers are designed based on the harmonics present the load. The special design of K-Factor Transformer helps us to depend on much to eliminate or withstanding from the effects of Harmonics.