The invention is directed to a system and related method of allocating power in a rack mounted computer system where the individual servers are powered from a central power supply system. The structure includes a series of serial communication pathways coupling the servers and the individual power supplies in the power supply system. A series of chassis communication modules communicates with servers in its respective chassis, and relays messages to and from a power supply communication module, which is responsible for granting or denying permission for individual servers to allocate power. The disclosed system also envisions intelligent de-allocation of power, for example in the event of a failure of individual components of the central power supply system.