SETL has approved a total investment of approximately ₹500 crore to be deployed across equity acquisition, capacity expansion and working capital for the combined business | Photo Credit: Kesavan A N 1612@Chennai

Standard Engineering Technology (SETL), a company engaged in precision and multidisciplinary engineering, will acquire a majority stake in GScale Energy Pvt Ltd, a company specialising in AI Datacenter Engineering infrastructure.

The Hyderabad-based SETL proposes to acquire up to 51 per cent shareholding in GScale Energy through a combination of primary capital infusion and a strategic share-swap arrangement with existing shareholders, committing approximately ₹190 crore for this Phase I investment.

As part of a broader phased programme, SETL has approved a total investment of approximately ₹500 crore to be deployed across equity acquisition, capacity expansion and working capital for the combined business, entirely self-funded from the company’s cash flows.

“This investment is the natural evolution of everything SETL has built since 2013,” Nageswara Rao Kandula, Managing Director, SETL, told newspersons here on Thursday. 

“With GScale’s domain expertise we are building a platform to deliver complete, concept-to-commissioning AI Datacenter solutions at scale,’’ he added.  

Kasu Brahma Reddy, Founder & Director of GScale Energy said: “Joining hands with SETL is a transformative step for GScale. With SETL’s manufacturing scale, financial strength, and engineering depth, we are well positioned to deliver world-class AI Datacentre Engineering solutions for India’s next generation of digital infrastructure.”  

While GScale Energy will continue to be led by its founder and leadership team, SETL will provide strategic guidance, capital, and access to its manufacturing scale and integrated execution capability.

The proposed acquisition is a part of SETL’s engineering expansion strategy, extending its expertise in concept-to-commissioning engineering solutions serving the pharmaceutical, chemical, and biotechnology industries into the rapidly growing AI datacentre sector. 

India’s AI and hyperscale datacentre infrastructure market is projected to require approximately $20–25 billion of investment through 2030, and SETL intends to be a leading engineering partner in this build-out, according to the company.

Published on June 25, 2026