India based Standard Engineering Technology (SETL) has announced plans to acquire up to a 51% stake in GScale Energy, marking its entry into AI datacentre engineering market.
SETL will fund the purchase through a combination of primary capital infusion and a share-swap arrangement with existing GScale shareholders, committing nearly Rs1.9bn ($201.2bn) in the first phase of investment.
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The transaction forms part of a broader programme, with SETL’s board approving around Rs5bn in total investment, covering equity acquisition, capacity expansion, and working capital for the combined business.
All funding is expected to come from the company’s own cash flows, with no new debt planned.
GScale Energy, led by founder and director Kasu Brahma Reddy, currently operates around 400,000m² of datacentre infrastructure.
The company aims to increase this to 1,000,000m² by the financial year ending 2028 through phased expansion.
Brahma Reddy will continue to head GScale Energy, which will maintain its existing leadership. SETL will provide strategic direction, capital, and access to manufacturing and execution resources.
SETL managing director Nageswara Rao Kandula said: “This investment is the natural evolution of everything SETL has built since 2013. The same precision and integrated execution capability that made us a trusted engineering partner to pharma and chemical companies will now power the datacentres driving the AI revolution.
“With GScale’s domain expertise and Mr Kasu Brahma Reddy’s leadership, we are building a platform to deliver complete, concept-to-commissioning AI datacentre solutions at scale.”
Brahma Reddy 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.”
Manufacturing operations are expected to commence in November 2026, with management targeting revenue of around Rs2.5bn from the new business in FY2027, depending on execution and customer schedules.
