Hyderabad-based precision and multidisciplinary engineering company Standard Engineering Technology (SETL) is acquiring up to 51% stake in data centre engineering and infrastructure solutions provider GScale Energy for ₹190 crore cash and share swap deal.
It is taking acquisition route, as opposed to building AI datacentre capabilities organically, since that provides immediate access to Gscale’s domain expertise, hyperscaler relationships and ready-to-market LOIs. The move will accelerate SETL’s entry into a market opportunity of $5.2–6.7 trillion in global AI datacentre capex by 2030, including $40–50 billion in India.
SETL, which primarily caters to pharmaceutical and chemical companies, has decided to invest around ₹500 crore towards across the equity acquisition, capacity expansion and working capital for the combined business, to be funded from the company’s cash flows.
SETL shares closed 4.91% lower on the BSE at ₹213.20 apiece after touching a new 52-week high of ₹236 intra-day.
GScale, following the acquisition, will become its subsidiary. The combined entity will build a platform to deliver complete, concept-to-commissioning AI datacentre solutions at scale. These will include power and cooling infrastructure to precision fabrication, automation and commissioning, SETL managing director Nageswara Rao Kandula said in a release.
Manufacturing operations are expected to commence from November. The company is targeting ₹250 crore revenue from the new vertical this fiscal.
GScale Energy is led by Kasu Brahma Reddy, who has been associated with the datacentre industry for more than 25 years and is a former president of CtrlS Datacenters.
Published – June 25, 2026 09:30 pm IST
