The Rise of Tokenization and AI: The New Era of Orbital Cloud Infrastructure

The rapidly expanding tokenization market is projected to grow from $1.24 trillion in 2025 to multi-trillion-dollar valuations by the decade's close. This growth is fueled by clearer regulations and the emerging concept of orbital cloud infrastructure, which integrates AI and blockchain technology. This article, part two of a four-part series, delves into the energy demands necessary for AI-driven tokenization in orbital cloud data centers.

Key Takeaways

The global tokenization market is anticipated to reach multi-trillion dollars by the end of the decade, growing from $1.24 trillion in 2025.
The establishment of orbital cloud infrastructure introduces AI and blockchain capabilities in low Earth orbit (LEO) satellites, enhancing data processing.
Major figures and organizations, including former President Trump and the U.S. Department of Energy, are pivotal in advancing AI and energy innovation policies.
The inaugural launch of orbital data networks signals significant advancements in decentralized data storage and processing.
Recent changes to commercial solar tax credits may affect investments in solar-propelled technology.

I evaluate key energy requirements to support the growth in AI-driven tokenization necessitating orbital cloud data centers.

Introduction

After years of writing about the sustainability, regulation, and taxation of digital assets since 2017, I never thought I would witness the dawn of orbital cloud infrastructure, especially with the support of my editor, Max Yakubowski. As we turn our attention to 2025, we find that the concept of “orbital cloud” infrastructure is transitioning from theory to practice, with companies and research institutions launching prototypes of orbital data centers and computing nodes in low Earth orbit (LEO), powered by solar energy captured in space.

The Impact of Policy on AI Development

The shift towards orbital cloud infrastructure has been supported by significant policy measures, including President Donald Trump's Executive Order aimed at enhancing American leadership in artificial intelligence. Furthermore, the U.S. Department of Energy initiated the Genesis Mission, aimed at leveraging AI to boost scientific discovery, enhance national security, and innovation in energy. As a result, hyperscale data center companies are now investigating the integration of solar energy from space to power energy-intensive processes in blockchain and AI.

Launch of Orbital Cloud Network

On December 10, 2025, PowerBank Corporation successfully launched the DeStarlink Genesis-1 satellite, marking a major milestone for Orbit AI in establishing its Orbital Cloud network. This innovative framework allows for AI computing, connectivity, and blockchain-verified processing to occur directly on low-Earth orbit satellites powered by solar energy from space.

Orbit AI, based in Singapore, is a trailblazer in aerospace technology, developing a decentralized LEO satellite network called DeStarlink alongside orbital AI infrastructure (DeStarAI) that operates solely on solar energy. The system aims to feature solar-powered computing and blockchain nodes in space, designed to withstand geopolitical challenges. The company collaborates with PowerBank Corporation (Canada), Intellistake Technologies (Canada), NVIDIA (US) for GPU technology, and the Ethereum Foundation (Switzerland) for blockchain development.

The rise of orbital cloud infrastructure is fueled by government commitments, decreasing satellite launch costs, and critical technological advancements that have shifted space solar technology from theory to a viable utility-scale solution. The uninterrupted solar energy in geostationary orbit eliminates the limitations of terrestrial renewables, achieving over 90% energy conversion efficiency and significantly lowering energy costs.

In 2025, the space-based solar power market was valued at $0.63 billion, with expectations to grow to $4.19 billion by 2040, showcasing a compound annual growth rate (CAGR) of 13.46%.

Tokenization and AI: The emergence of orbital cloud infrastructure | Opinion - 1 Courtesy of the author

Understanding Hyperscale Cloud Data Centers

Hyperscale cloud providers are large-scale service operators managing extensive, globally distributed data centers that offer on-demand computing resources. Companies like AWS, Microsoft Azure, and Google Cloud exemplify these services. They have the capability to scale operations in both horizontal and vertical directions, facilitating millions of virtual machines and significant workloads by utilizing edge cloud technology to provide better latency and performance for users in remote regions.

These providers use tokenization for AI model processing and ensuring data security and compliance. They serve as the backbone of data center operations but require enormous, constant renewable power (from tens to hundreds of megawatts), a demand driven by AI technologies. Consequently, hyperscale cloud providers are looking into placing solar energy collection and data centers in orbit to utilize consistent solar energy while reducing the pressure on terrestrial power networks.

| Hyperscale Cloud Company | Project Genesis Mission | Orbital Edge Computing | Orbital Data Center | Space Solar | LEO Network | Launch Rocket | Robotics | |---|---|---|---|---|---|---|---| | Amazon Web Services (AWS) | Yes | Yes | Yes | Blue Origin - Blue Ring spacecraft | Yes | Yes | | Microsoft Azure | Yes | Yes | Azure Space | No | Azure Orbital Ground Station | No | Space Azure Solar Cell Tech | | Google Cloud | Yes | Yes | "Space Llama" | Yes | Project Suncatcher | No | Google Deep Mind | | Meta | No | No | Terrestrial Edge Computing | No | Metasat | No | High-altitude drones (Aquila) | | Oracle | Yes | No | Terrestrial Edge Computing | No | Uses Starlink | No | No | | IBM | Yes | Yes | No | Yes | No | No | | Apple | OpenAI | No | Terrestrial Edge Computing | No | Uses Globalstar | No | No | | SpaceX - Orbital Data Center | XAI, Groq | Yes | Yes | Yes | Starlink | Yes | Yes | | CoreWeave | Yes | No | Terrestrial Edge Computing | No | No | No | | OpenAI | Yes | No | Terrestrial Edge Computing | No | No | No | | Orbit AI – Orbital Data Center | No | Yes | Yes | Yes | Yes | DeStarlink | No | InOrbit.AI, & Orbital Robotics Corp |

The Concept of Space-Based Solar Power

Space-based solar power (SBSP) is an innovative idea for generating continuous, carbon-free energy from orbit, which can be used to power terrestrial grids and hyperscale data centers. Solar panels in orbit can produce energy up to eight times more effectively than those on Earth, minimizing the need for traditional battery storage. The energy collected can be transmitted back to Earth to provide stable and clean power for high-demand sites like hyperscale cloud data centers.

SBSP harnesses various advanced space technologies to create a unified platform comprising decentralized LEO networks (DeStarlink), orbital AI data centers (DeStarAI), robotic technologies, wireless energy transmission systems (utilizing microwaves or lasers), and blockchain verification nodes, with an anticipated growth of $700 billion in the coming decade.

Historically, SBSP has been explored by organizations including NASA, the China Academy of Space Technology, the Japanese Space Agency, the European Space Agency, the Indian Space Research Organization, and others. Prominent institutions like Caltech (USA), JAXA (Japan), and several European efforts are actively engaged in developing wireless energy transmission technologies, demonstrating successful results and aiming to provide continuous clean energy on a global scale.

Moreover, various commercial entities, including well-established aerospace firms and a growing range of startups, are working toward making space-based solar power a reality. Companies like Solaren Corporation, Space Solar, and others are among those pushing forward with efforts to commercialize the SBSP orbital cloud network.

Changes in Commercial Solar Tax Credits and Cloud Transactions

As part of the One Big Beautiful Bill signed into law by President Donald Trump, commercial solar energy tax credits have been adjusted with more stringent deadlines and conditions instead of being fully eliminated.

To qualify for the commercial solar tax credit, construction must begin by July 4, 2026. This standard timeline allows up to four years from construction start to project completion and operational status (for example, a project started in 2026 can be operational by 2030).

For projects that start after July 4, 2026, they must be operational by December 31, 2027, to receive any tax credits. Facilities that do not meet the construction deadline will lose eligibility for tax credits entirely if placed into service post-December 31, 2027.

Additionally, the IRS updated regulations effective January 14, 2025, classify income from cloud transactions as service income rather than property rentals. This classification may have significant impacts on foreign tax credits and cross-border withholding tax strategies for cloud companies.