SETL Systems has approved a ₹500 crore investment to acquire a controlling 51% stake in GScale Energy, marking a significant expansion into the specialized engineering sector for AI datacenters.
The transaction, reported by Hindu Businessline, involves deploying capital across equity acquisition, capacity expansion, and working capital for the combined business entity.
The move underscores the growing intersection between traditional engineering firms and the high-power infrastructure requirements of the artificial intelligence boom.
By taking a majority stake, SETL aims to consolidate its capabilities in designing and building the complex energy systems required for next-generation data facilities, a segment seeing rapid capital expenditure growth globally.
This acquisition aligns with broader trends in the energy and infrastructure sectors, where firms are increasingly targeting the power supply chain for tech giants.
While major oil majors like Shell pursue upstream consolidation, engineering and construction players are pivoting toward the electrification and cooling needs of the digital economy.