As AI systems scale across sectors like healthcare, manufacturing, and finance, Europe faces a critical challenge: how to orchestrate AI securely across privacy, regulatory, and organizational boundaries. This case study explores a pioneering project that embraces zero-trust architecture, metadata-first orchestration, and mathematical compliance via PDEs. At the heart of this initiative lies a breakthrough: policy-aware orchestration through partial differential equations, allowing AI to run only when privacy, intent, and law align. Upstaff provided specialized AI engineers who tackled the core challenges of federated orchestration, zero-trust metadata, and explainable infrastructure at scale. This article provides insights into a European data infrastructure project focused on creating a policy-aware, zero-trust system for federated AI. The initiative aims to revolutionize data infrastructure by replacing centralized data systems with a decentralized, privacy-preserving framework. It uses partial differential equations (PDEs) to enforce compliance (e.g., GDPR, EU AI Act) and manage data access for secure multi-party collaboration without raw data exchange. What we will cover: What we will cover: Zero-Trust Metadata and Dataspaces Zero-Trust AI Orchestration Across Privacy and Policy Boundaries System Architecture Overview Engineering Stack & Capabilities Cloud Infrastructure Capability Matrix (AWS-focused) Engineering the Backbone of Federated AI Results So Far Lessons Learned & Engineering Insights Why This Matters: The Next Wave of AI Infrastructure Conclusion: Engineering Trustworthy AI at Scale Zero-Trust Metadata and Dataspaces Zero-Trust AI Orchestration Across Privacy and Policy Boundaries System Architecture Overview Engineering Stack & Capabilities Cloud Infrastructure Capability Matrix (AWS-focused) Engineering the Backbone of Federated AI Results So Far Lessons Learned & Engineering Insights Why This Matters: The Next Wave of AI Infrastructure Conclusion: Engineering Trustworthy AI at Scale Dataspace Dataspace A dataspace is a federated network designed for secure, decentralized data exchange. It allows organizations to maintain control over their data while enabling interoperability across different platforms and industries. decentralized data exchange Dataspace enables trusted data sharing in a way that preserves the data sovereignty of participants based on a standard governance framework. Dataspaces are pivotal in sectors like mobility, healthcare, logistics, and smart cities, where data integration is essential for innovation and efficiency. Dataspaces can be purpose- or sector-specific, or cross-sectoral. Dataspaces are pivotal in sectors like mobility, healthcare, logistics, and smart cities, where data integration is essential for innovation and efficiency. Dataspaces can be purpose- or sector-specific, or cross-sectoral. Zero-Trust Metadata and Dataspaces Zero-Trust Metadata and Dataspaces As Europe advances toward a digitally sovereign future, the way we handle data is undergoing a fundamental shift. Traditional architectures such as centralized data lakes, post-hoc compliance checks, and monolithic workflows are no longer sufficient. Emerging standards, like the EU AI Act and GDPR, demand real-time governance, privacy-preserving design, and explainability by default. At the frontier of this transformation is a groundbreaking project. Its mission is to reimagine data infrastructure as a policy-aware, zero-trust system built not from pipelines, but from mathematics. At the core of this system are partial differential equations (PDEs) that regulate resource access, data movement, and AI behavior through boundary conditions. This paradigm allows multi-party collaboration without raw data exchange, high-performance computing (HPC) on demand, with minimal energy footprint, and compliance encoded directly into the infrastructure. How PDE-Orchestrated Infrastructure Differs From Conventional Systems How PDE-Orchestrated Infrastructure Differs From Conventional Systems Feauture Conventional Cloud AI PDE-Orchestrated Zero-Trust AI Data Movement Centralized Local-only Policy Compliance Post-hoc By-construction Resource Usage Persistent Ephemeral Governance Manual Embedded in PDEs Traceability Limited DAG + Policy-bound Feauture Conventional Cloud AI PDE-Orchestrated Zero-Trust AI Data Movement Centralized Local-only Policy Compliance Post-hoc By-construction Resource Usage Persistent Ephemeral Governance Manual Embedded in PDEs Traceability Limited DAG + Policy-bound Feauture Conventional Cloud AI PDE-Orchestrated Zero-Trust AI Feauture Feauture Conventional Cloud AI Conventional Cloud AI PDE-Orchestrated Zero-Trust AI PDE-Orchestrated Zero-Trust AI Data Movement Centralized Local-only Data Movement Data Movement Centralized Centralized Local-only Local-only Policy Compliance Post-hoc By-construction Policy Compliance Policy Compliance Post-hoc Post-hoc By-construction By-construction Resource Usage Persistent Ephemeral Resource Usage Resource Usage Persistent Persistent Ephemeral Ephemeral Governance Manual Embedded in PDEs Governance Governance Manual Manual Embedded in PDEs Embedded in PDEs Traceability Limited DAG + Policy-bound Traceability Traceability Limited Limited DAG + Policy-bound DAG + Policy-bound Zero-Trust AI Orchestration Across Privacy and Policy Boundaries Zero-Trust AI Orchestration Across Privacy and Policy Boundaries The project's vision is radical: create a framework where data never moves, but value does. Rather than collecting data into central repositories, each participant in the system, whether in healthcare, manufacturing, or public services, retains full control of their data. A dynamic knowledge graph holds metadata, ontologies, and processing “recipes.” Computation is triggered by PDEs that enforce policy gates (GDPR, ISO, GAMP) as mathematical constraints. When certain boundary conditions are met, e.g., a spike in demand or anomaly detection, a short-lived HPC cluster spins up, computes locally, and vanishes. But to make this vision real, the team needed engineers with a rare mix of skills: Privacy-preserving machine learning Federated AI Knowledge graph integration Explainable DAG orchestration Semantic modeling and metadata processing Privacy-preserving machine learning Federated AI Knowledge graph integration Explainable DAG orchestration Semantic modeling and metadata processing At the heart of the system lies a governance PDE, where each term in the equation maps to a constraint: ∂u/∂t + ∇·(α(u)∇u) = f(x, t)- represents AI execution across time and space. ∂u/∂t — latency or response time α(u) — policy gating/access weights f(x, t) — triggers like demand spike or anomaly Boundary terms = regulatory or domain-specific constraints, GDPR compliance, semantic gates, and user intent. ∂u/∂t + ∇·(α(u)∇u) = f(x, t)- represents AI execution across time and space. ∂u/∂t — latency or response time α(u) — policy gating/access weights f(x, t) — triggers like demand spike or anomaly Boundary terms = regulatory or domain-specific constraints, GDPR compliance, semantic gates, and user intent. If the PDE has no solution, computation is halted. This turns policy from a rule to a hard condition of execution. “If you can’t solve the PDE, you can’t run the task.” This is proactive compliance by construction. System Architecture Overview System Architecture Overview Local Data Silos: Hospitals, factories, and labs retain full control of raw data. Nothing is centralized. Policy Gate: Applies GDPR, AI Act, and internal policies at the metadata boundary. Invalid flows are filtered before orchestration. PDE Engine: The core of the system. It solves boundary-condition equations where each constraint represents a legal, semantic, or resource constraint. Local Data Silos: Hospitals, factories, and labs retain full control of raw data. Nothing is centralized. Local Data Silos: Hospitals, factories, and labs retain full control of raw data. Nothing is centralized. Local Data Silos Policy Gate: Applies GDPR, AI Act, and internal policies at the metadata boundary. Invalid flows are filtered before orchestration. Policy Gate: Applies GDPR, AI Act, and internal policies at the metadata boundary. Invalid flows are filtered before orchestration. Policy Gate PDE Engine: The core of the system. It solves boundary-condition equations where each constraint represents a legal, semantic, or resource constraint. PDE Engine: The core of the system. It solves boundary-condition equations where each constraint represents a legal, semantic, or resource constraint. PDE Engine Examples: A GDPR clause becomes an unsolvable boundary if data leaves its origin. A compute budget becomes a conditional activation. A GDPR clause becomes an unsolvable boundary if data leaves its origin. A compute budget becomes a conditional activation. Knowledge Graph: Stores semantic mappings, policy clauses, domain taxonomies, and orchestration “recipes.” This separates logic from data — enabling fast, ontology-driven decisions. Ephemeral HPC Clusters: Resources are spun up only when a PDE solution exists — when policy, readiness, and workload match. These may include: Knowledge Graph: Stores semantic mappings, policy clauses, domain taxonomies, and orchestration “recipes.” This separates logic from data — enabling fast, ontology-driven decisions. Knowledge Graph: Stores semantic mappings, policy clauses, domain taxonomies, and orchestration “recipes.” This separates logic from data — enabling fast, ontology-driven decisions. Knowledge Graph: Ephemeral HPC Clusters: Resources are spun up only when a PDE solution exists — when policy, readiness, and workload match. These may include: Ephemeral HPC Clusters: Resources are spun up only when a PDE solution exists — when policy, readiness, and workload match. Ephemeral HPC Clusters: These may include: Classification models Anomaly detectors Simulation workloads Federated training Classification models Anomaly detectors Simulation workloads Federated training DAG Traceability: Each operation logs its origin: which policy triggered it, which resource was allocated, and which boundary condition was met. DAG Traceability: Each operation logs its origin: which policy triggered it, which resource was allocated, and which boundary condition was met. DAG Traceability Engineering Stack & Capabilities Engineering Stack & Capabilities Domain Contribution Tools and Methods Federated AI Built vertical & horizontal pipelines PySyft, Flower, OpenMined, custom secure aggregation protocols Semantic Modeling Ontology→PDE mapping RDF/OWL, Protégé, SPARQL, Neo4j, GraphQL Metadata-First Design Graph-driven orchestration GraphQL, custom DAG wrappers, Apache Airflow, Argo Workflows, Prefect, Temporal Explainability & Auditing Traceable execution lineage DAG visualizers, metadata provenance tracing, JSON-LD, OpenPolicyAgent logs PDE Compliance Runtime Mathematical constraint solver SciPy, JAX, TensorFlow PDE, PyTorch autograd, custom symbolic solvers Infrastructure Engineering Deployed resilient, policy-aware federated systems across cloud-native and hybrid environments Amazon Web Services Domain Contribution Tools and Methods Federated AI Built vertical & horizontal pipelines PySyft, Flower, OpenMined, custom secure aggregation protocols Semantic Modeling Ontology→PDE mapping RDF/OWL, Protégé, SPARQL, Neo4j, GraphQL Metadata-First Design Graph-driven orchestration GraphQL, custom DAG wrappers, Apache Airflow, Argo Workflows, Prefect, Temporal Explainability & Auditing Traceable execution lineage DAG visualizers, metadata provenance tracing, JSON-LD, OpenPolicyAgent logs PDE Compliance Runtime Mathematical constraint solver SciPy, JAX, TensorFlow PDE, PyTorch autograd, custom symbolic solvers Infrastructure Engineering Deployed resilient, policy-aware federated systems across cloud-native and hybrid environments Amazon Web Services Domain Contribution Tools and Methods Domain Domain Contribution Contribution Tools and Methods Tools and Methods Federated AI Built vertical & horizontal pipelines PySyft, Flower, OpenMined, custom secure aggregation protocols Federated AI Federated AI Built vertical & horizontal pipelines Built vertical & horizontal pipelines PySyft, Flower, OpenMined, custom secure aggregation protocols PySyft, Flower, OpenMined, custom secure aggregation protocols Semantic Modeling Ontology→PDE mapping RDF/OWL, Protégé, SPARQL, Neo4j, GraphQL Semantic Modeling Semantic Modeling Ontology→PDE mapping Ontology→PDE mapping RDF/OWL, Protégé, SPARQL, Neo4j, GraphQL RDF/OWL, Protégé, SPARQL, Neo4j, GraphQL Metadata-First Design Graph-driven orchestration GraphQL, custom DAG wrappers, Apache Airflow, Argo Workflows, Prefect, Temporal Metadata-First Design Metadata-First Design Graph-driven orchestration Graph-driven orchestration GraphQL, custom DAG wrappers, Apache Airflow, Argo Workflows, Prefect, Temporal GraphQL, custom DAG wrappers, Apache Airflow, Argo Workflows, Prefect, Temporal Explainability & Auditing Traceable execution lineage DAG visualizers, metadata provenance tracing, JSON-LD, OpenPolicyAgent logs Explainability & Auditing Explainability & Auditing Traceable execution lineage Traceable execution lineage DAG visualizers, metadata provenance tracing, JSON-LD, OpenPolicyAgent logs DAG visualizers, metadata provenance tracing, JSON-LD, OpenPolicyAgent logs PDE Compliance Runtime Mathematical constraint solver SciPy, JAX, TensorFlow PDE, PyTorch autograd, custom symbolic solvers PDE Compliance Runtime PDE Compliance Runtime Mathematical constraint solver Mathematical constraint solver SciPy, JAX, TensorFlow PDE, PyTorch autograd, custom symbolic solvers SciPy, JAX, TensorFlow PDE, PyTorch autograd, custom symbolic solvers Infrastructure Engineering Deployed resilient, policy-aware federated systems across cloud-native and hybrid environments Amazon Web Services Infrastructure Engineering Infrastructure Engineering Deployed resilient, policy-aware federated systems across cloud-native and hybrid environments Deployed resilient, policy-aware federated systems across cloud-native and hybrid environments Amazon Web Services Amazon Web Services Cloud Infrastructure Capability Matrix (AWS-Focused) Cloud Infrastructure Capability Matrix (AWS-Focused) Category AWS Services Listed Notes Compute & Containerization ECS, EKS, EC2, Fargate, Lambda All AWS-native Networking & Security VPC, PrivateLink, IAM, Security Groups, KMS, Secrets Manager AWS-specific Storage S3, EFS, FSx AWS storage services Serverless Pipelines Step Functions, EventBridge, DynamoDB Streams AWS-native serverless tools Data Layer Neptune, RDS, Aurora, Glue, Athena All are AWS-managed data services Monitoring & Observability CloudWatch, X-Ray, OpenTelemetry FirOpenTelemetry is a cross-cloud; two are AWS Compliance Enforcement Macie, GuardDuty, Config All AWS-native compliance/security tools Category AWS Services Listed Notes Compute & Containerization ECS, EKS, EC2, Fargate, Lambda All AWS-native Networking & Security VPC, PrivateLink, IAM, Security Groups, KMS, Secrets Manager AWS-specific Storage S3, EFS, FSx AWS storage services Serverless Pipelines Step Functions, EventBridge, DynamoDB Streams AWS-native serverless tools Data Layer Neptune, RDS, Aurora, Glue, Athena All are AWS-managed data services Monitoring & Observability CloudWatch, X-Ray, OpenTelemetry FirOpenTelemetry is a cross-cloud; two are AWS Compliance Enforcement Macie, GuardDuty, Config All AWS-native compliance/security tools Category AWS Services Listed Notes Category Category AWS Services Listed AWS Services Listed Notes Notes Compute & Containerization ECS, EKS, EC2, Fargate, Lambda All AWS-native Compute & Containerization Compute & Containerization ECS, EKS, EC2, Fargate, Lambda ECS, EKS, EC2, Fargate, Lambda All AWS-native All AWS-native Networking & Security VPC, PrivateLink, IAM, Security Groups, KMS, Secrets Manager AWS-specific Networking & Security Networking & Security VPC, PrivateLink, IAM, Security Groups, KMS, Secrets Manager VPC, PrivateLink, IAM, Security Groups, KMS, Secrets Manager AWS-specific AWS-specific Storage S3, EFS, FSx AWS storage services Storage Storage S3, EFS, FSx S3, EFS, FSx AWS storage services AWS storage services Serverless Pipelines Step Functions, EventBridge, DynamoDB Streams AWS-native serverless tools Serverless Pipelines Serverless Pipelines Step Functions, EventBridge, DynamoDB Streams Step Functions, EventBridge, DynamoDB Streams AWS-native serverless tools AWS-native serverless tools Data Layer Neptune, RDS, Aurora, Glue, Athena All are AWS-managed data services Data Layer Data Layer Neptune, RDS, Aurora, Glue, Athena Neptune, RDS, Aurora, Glue, Athena All are AWS-managed data services All are AWS-managed data services Monitoring & Observability CloudWatch, X-Ray, OpenTelemetry FirOpenTelemetry is a cross-cloud; two are AWS Monitoring & Observability Monitoring & Observability CloudWatch, X-Ray, OpenTelemetry CloudWatch, X-Ray, OpenTelemetry FirOpenTelemetry is a cross-cloud; two are AWS FirOpenTelemetry is a cross-cloud; two are AWS Compliance Enforcement Macie, GuardDuty, Config All AWS-native compliance/security tools Compliance Enforcement Compliance Enforcement Macie, GuardDuty, Config Macie, GuardDuty, Config All AWS-native compliance/security tools All AWS-native compliance/security tools Engineering the Backbone of Federated AI Engineering the Backbone of Federated AI Among others, Federated AI also allows them to significantly reduce the amount of data they transfer. In fact, some projects managed to reduce their data transfer burden by more than 99% compared to a centralized training model. This is important because moving very large datasets contributes to higher costs, lower performance, and decreased energy efficiency. There are two main approaches to federated AI: Horizontal federated AI: pulls model weights from the same types of data in every site Vertical federated AI: pulls model weights from different types of data in different sites Horizontal federated AI: pulls model weights from the same types of data in every site Horizontal federated AI: pulls model weights from the same types of data in every site Horizontal federated AI Vertical federated AI: pulls model weights from different types of data in different sites Vertical federated AI: pulls model weights from different types of data in different sites Vertical federated AI: AI engineers contributed to several mission-critical domains: Multi-head AI pipelines Asynchronous pipelines for classification, anomaly detection, and schema interpretation, all integrated into a dynamic metadata fabric. Semantic-aware orchestration Knowledge graph outputs to PDE boundary inputs, ensuring compute only runs when policies, semantics, and capacity align. Zero-trust federation logic AI workflows to operate without ever touching raw data—only abstracted metadata fragments. Audit-ready explainability Directed acyclic graphs (DAGs) trace each decision back to a semantic label or policy clause, aligning with upcoming EU AI Act requirements. Multi-head AI pipelines Asynchronous pipelines for classification, anomaly detection, and schema interpretation, all integrated into a dynamic metadata fabric. Multi-head AI pipelines Multi-head AI pipelines Asynchronous pipelines for classification, anomaly detection, and schema interpretation, all integrated into a dynamic metadata fabric. Semantic-aware orchestration Knowledge graph outputs to PDE boundary inputs, ensuring compute only runs when policies, semantics, and capacity align. Semantic-aware orchestration Semantic-aware orchestration Knowledge graph outputs to PDE boundary inputs, ensuring compute only runs when policies, semantics, and capacity align. Zero-trust federation logic AI workflows to operate without ever touching raw data—only abstracted metadata fragments. Zero-trust federation logic Zero-trust federation logic AI workflows to operate without ever touching raw data—only abstracted metadata fragments. Audit-ready explainability Directed acyclic graphs (DAGs) trace each decision back to a semantic label or policy clause, aligning with upcoming EU AI Act requirements. Audit-ready explainability Audit-ready explainability Directed acyclic graphs (DAGs) trace each decision back to a semantic label or policy clause, aligning with upcoming EU AI Act requirements. Behind some of the engineering challenges in this initiative is a team of specialized AI engineers from Upstaff, who could contribute to policy-aware AI infrastructure across domains as sensitive as healthcare and industrial manufacturing. Results So Far Results So Far Though still in active development, the project has made several breakthroughs: A working alpha prototype of the PDE aggregator with sub-second concurrency response. Real-time metadata ingestion and anomaly classification through AI modules. Federated learning simulations operating under policy constraints. Traceable, explainable orchestration flows through self-documenting DAGs. A working alpha prototype of the PDE aggregator with sub-second concurrency response. Real-time metadata ingestion and anomaly classification through AI modules. Federated learning simulations operating under policy constraints. Traceable, explainable orchestration flows through self-documenting DAGs. Lessons Learned & Engineering Insights Lessons Learned & Engineering Insights Math over policies wins: Executable PDEs > static rules Metadata is infrastructure: Ontologies replaced scripts Compliance must be first-class: Not a feature—an execution condition No-code ≠ Low-trust: Engineers must deeply understand the domain and legal semantics Math over policies wins: Executable PDEs > static rules Metadata is infrastructure: Ontologies replaced scripts Compliance must be first-class: Not a feature—an execution condition No-code ≠ Low-trust: Engineers must deeply understand the domain and legal semantics Why This Matters: The Next Wave of AI Infrastructure Why This Matters: The Next Wave of AI Infrastructure The technical architecture being developed in this project isn’t niche. It’s a preview of where AI and data engineering are headed: Federated AI in finance and healthcare Semantic interoperability across ESG supply chains Ephemeral HPC for energy-efficient computing Mathematical governance over data flows Federated AI in finance and healthcare Semantic interoperability across ESG supply chains Ephemeral HPC for energy-efficient computing Mathematical governance over data flows Conclusion: Engineering Trustworthy AI at Scale Conclusion: Engineering Trustworthy AI at Scale Real-world AI lives at the intersection of regulation, infrastructure, ethics, and performance. This initiative is a bold attempt to build a system where all those concerns are solved mathematically, structurally, and scalably. Compliance isn’t a document; it’s a boundary condition. And orchestration isn’t a workflow; it’s an equation.