A demand based power re-allocation system includes one or more subsystems to assign a power allocation level to a plurality of servers, wherein the power allocation level is assigned by priority of the server. The system may throttle power for one or more of the plurality of servers approaching the power allocation level, wherein throttling includes limiting performance of a processor, and track server power throttling for the plurality of servers. The method compares power throttling for a first server with power throttling for remaining servers in the plurality of servers and adjusts throttling of the plurality of servers, wherein throttled servers receive excess power from unthrottled servers.