Bård StandalAI and Power
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The system

The grid operator sets the usable capacity.

Its offer sets the viable scale before compute is installed. The layers below follow the next decision that can constrain the service.

Sources checked .

Cross-section of five AI system layers.
  1. Physical infrastructureElectricity and sites

    What happens and who acts

    Electricity reaches a data centre through the power system. The site also needs land and cooling; its usable scale depends on a live grid connection.

    • Grid operators
    • Data-centre owners
    • Electricity suppliers
    • Planning authorities
    Scarcity
    Connection capacity is scarce where the network cannot serve the requested load. Cooling can set a separate boundary, while permits and equipment availability determine whether the site can use that capacity.
    Point of control
    The grid operator decides whether capacity is offered and on what terms. Planning authorities decide whether the site can be built.

    Rules reaching this layer

    • Large-load tariff proceedings

      FERC is examining who bears connection cost and reliability risk when large loads seek grid access.

      FERC release and orders
  2. ComputeMachines and cooling

    What happens and who acts

    Servers use electrical input for two jobs. Training uses examples to change learned numerical settings, called weights; inference uses those settings to produce an output.

    • Chip suppliers
    • Cloud operators
    • Data-centre operators
    • Compute customers
    Scarcity
    Specialised AI processors, also called accelerators, can be scarce. Rack power is the electricity available to servers in one rack; it can limit how many processors run at one site.
    Point of control
    Export authorisation can determine where a chip is delivered. A cloud allocation contract then determines who can use the installed capacity.

    Rules reaching this layer

    • Advanced-computing export controls

      US export rules consider the destination and end user. The available licence route can decide whether covered chips are supplied.

      Export Administration Regulations, Part 740

    • Competition powers over cloud-linked software

      The UK investigation can lead to conduct requirements if the CMA designates strategic market status.

      CMA case page
  3. ModelsWeights and training

    What happens and who acts

    A model consists of learned numerical settings produced by training. A provider decides whether to release it or place it on the market.

    • Model developers
    • Model providers
    • Training partners
    • Downstream integrators
    Scarcity
    Training compute is scarce. Access to specialist data can also limit model development.
    Point of control
    The provider controls the release decision and the terms on which downstream companies receive the model.

    Rules reaching this layer

    • EU provider obligations

      The AI Act attaches documentation and downstream-information duties to providers of general-purpose AI models.

      European Commission GPAI guidance

    • California frontier-developer duties

      SB 53 requires covered developers to maintain a safety framework and report critical incidents.

      California chaptered SB 53 text
  4. DeploymentServices and decisions

    What happens and who acts

    A company places a model inside a service or uses its output in a decision. Product design and operating choices determine what reaches the user.

    • Deployers
    • Platform operators
    • Software customers
    • People subject to decisions
    Scarcity
    A deployer may depend on access to the model or a cloud service. Integration capacity can limit how quickly the system changes.
    Point of control
    The service operator controls the user interface and the decision process. Contracts can shift a practical choice to the platform provider.

    Rules reaching this layer

  5. InstitutionsRules and enforcement

    What happens and who acts

    Legislatures make rules that regulators investigate and enforce. Courts decide disputes about the rules' reach.

    • Legislatures
    • Regulators
    • Courts
    • Public-sector buyers
    Scarcity
    An authority can act only within its legal mandate. Staffing and technical access can limit how quickly that power is used.
    Point of control
    Control can sit in a formal order or licence. A market designation and procurement decision provide other routes to a company.

    Rules reaching this layer

    • Public enforcement under the AI Act

      National authorities enforce current transparency duties, while the AI Office has a narrower stated role.

      European Commission Article 50 FAQ

    • Federal tariff proceedings

      Federal Power Act proceedings can change the tariff terms governing grid access for large loads.

      FERC release and orders