Tokenization and AI: The Rise of Orbital Cloud Infrastructure

In 2025, the tokenization market surged to around $1.24 trillion, up from $865.54 billion in 2024, driven by clearer regulations. This article explores the energy requirements for AI-driven tokenization necessitating orbital cloud data centers and discusses the initial implementations of orbital cloud infrastructure.

Key Takeaways

The global tokenization market is expected to reach multi-trillion-dollar growth by the decade's end, reaching approximately $1.24 trillion in 2025.
Orbital cloud infrastructure, blending AI and blockchain technology, is in its nascent stages, with prototypes planned for low Earth orbit (LEO) satellites.
The U.S. government is actively supporting AI and energy innovation through policies and initiatives, including the Genesis Mission.
Space-based solar power (SBSP) presents a promising solution for providing continuous energy to hyperscale data centers.
Commercial solar energy tax credits have been modified, affecting project timelines and eligibility.

The global tokenization market is experiencing a remarkable growth trajectory, reaching an estimated $1.24 trillion in 2025, up from approximately $865.54 billion in 2024. This expansion is primarily attributed to increased regulatory clarity in significant regions. This article is the second installment of a four-part series examining crucial energy requirements to support AI-driven tokenization, which is prompting the need for orbital cloud data centers. Part One highlighted 2025 as the pivotal year for tokenization. Part Three will delve into energy requirements essential for AI-driven tokenization, while Part Four will explore how tokenized edge cloud streaming and AI are revolutionizing sports and prediction market betting, creating an engaging immersive experience.

After covering sustainability, regulation, and taxation of digital assets since 2017, I never imagined I’d write this article, particularly with my editor, Max Yakubowski, still with me. Here we go… 2025 is the year that the idea of “orbital cloud” infrastructure transitioned from a theoretical concept to initial implementation, with several companies and research institutions set to launch prototypes of orbital data centers and computing nodes within low Earth orbit (LEO) satellites powered by solar energy from space.

The growth of the AI sector was reinforced by President Donald Trump's Executive Order aimed at eliminating barriers to American leadership in Artificial Intelligence, part of America’s AI Action Plan. This effort, coupled with the U.S. Department of Energy's Genesis Mission—an ambitious initiative leveraging AI to foster discovery, enhance national security, and drive energy innovation—has spurred hyperscale data center companies to investigate integrating orbital solar energy into energy-heavy blockchain and AI verification processes.

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

Launch of the Orbital Cloud Network

On December 10, 2025, PowerBank Corporation launched the inaugural DeStarlink Genesis-1 satellite, marking the first steps by Orbit AI to construct its Orbital Cloud network. This architecture allows for AI computing, connectivity, and blockchain-based processing to occur directly within low-Earth satellites, powered by solar energy harvested in space.

Orbit AI, headquartered in Singapore, is leading the development of a decentralized low-Earth orbit satellite network (DeStarlink) combined with orbital AI computing and data infrastructures (DeStarAI), entirely powered by solar energy from space. This innovative system encompasses solar-powered computing payloads and blockchain-verified nodes in space, crafted to be resilient against geopolitical constraints. Orbit AI collaborates with PowerBank Corporation (Canada), Intellistake Technologies Corp (Canada), NVIDIA (U.S.) for high-performance GPUs, and the Ethereum Foundation (Switzerland) for blockchain architecture.

The advancement of orbital cloud infrastructure in 2025 is influenced by growing commitments from the public sector, drastically reduced satellite launch costs, and technological breakthroughs that shift space solar technology from a laboratory concept to a viable utility-scale solution. Continuous solar energy availability in geostationary orbit alleviates the reliability issues faced by terrestrial renewable energy. Furthermore, developments in metamaterial rectennas have achieved over 90% efficiency, minimizing the land footprint for ground receivers and reducing costs associated with delivered energy.

In 2025, the space-based solar power market size reached $0.63 billion and is projected to grow significantly to $4.19 billion by 2040, reflecting a strong compound annual growth rate (CAGR) of 13.46%.

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

Understanding Hyperscale Cloud Data Centers

A hyperscale cloud provider operates extensive, globally distributed data centers that deliver on-demand computing resources. Notable examples include AWS, Microsoft Azure, and Google Cloud, which possess the scalability to support millions of virtual machines and large workloads, integrating edge cloud technology to extend services to micro-data centers near users, thus providing lower latency and improved performance in remote regions.

These hyperscale cloud providers rely on two key components of tokenization: AI model processing and data security/compliance. They form the backbone of data center operations but require massive, uninterrupted renewable energy, driven by rising demand from AI. Consequently, hyperscale cloud companies are investigating placing solar collection and data centers in orbit to tap into continuous solar energy and reduce demands on terrestrial power grids.

| Hyperscale Cloud Company | Project Genesis | Orbital Edge Computing | Orbital Data Center | Space Solar | LEO Network | Launch | Robotics | |--------------------------|----------------|------------------------|---------------------|-------------|-------------|--------|----------| | Amazon Web Services (AWS) | Y | Y | Y | Blue Origin – Blue Ring spacecraft | Y | Y | | | Microsoft Azure | Y | Y | N | Sold Azure Orbital Ground Station | N | Space Azure Solar Cell Tech | N | | Google Cloud | Y | Y | Y | Project Suncatcher | Y | N | N | | Meta | N | N | N | Metasat | N | High-altitude, solar-powered drones (Aquila project) | N | | Oracle | Y | N | N | N | N | Uses Starlink | N | | IBM | Y | Y | N | Y | N | N | Y | | Apple | Open AI | N | N | N | N | Uses Globalstar | N | | SpaceX – Orbital Data Center | XAI, Groq | Y | Y | Y | Starlink | Y | Y | | CoreWeave | Y | N | N | N | N | N | N | | Open AI | Y | N | N | N | N | N | N | | Orbit AI – Orbital Data Center | N | Y | Y | Y | Y | DeStarlink | N | Y | InOrbit.AI, & Orbital Robotics Corp |

The Promise of Space-Based Solar Power

Space-based solar power (SBSP) offers a groundbreaking solution to generate uninterrupted, carbon-free energy from orbit to supply terrestrial grids and hyperscale data centers. Solar panels in space can be up to eight times more effective than those on Earth, operating nearly consistently, which significantly minimizes reliance on traditional battery storage. SBSP can transmit energy to ground stations (rectennas) providing reliable, clean power for high-demand users like hyperscale cloud data centers.

SBSP integrates various advanced space technologies, including decentralized LEO networks (DeStarlink), orbital AI data centers (DeStarAI), robotics, and wireless power transmission (via microwaves or lasers), backed by blockchain verification nodes, projecting a $700 billion growth over the next decade.

Although SBSP development is costly, it has garnered interest from organizations such as NASA, the Chinese Academy of Space Technology Corporation, the Japanese Space Agency, the European Space Agency, the Indian Space Research Organization, and the Russian Space Agency. Currently, Caltech (USA), JAXA (Japan), China, and the EU (ASCEND) are on the forefront of developing SBSP for wireless energy transmission. Caltech recently demonstrated the first successful in-orbit wireless power beaming, while JAXA/MHI and other entities are testing energy beaming from orbit, aiming for a constant supply of clean power worldwide and addressing issues related to weather and nighttime.

Moreover, various companies are striving to commercialize space-based solar power, including well-established aerospace firms, as well as numerous specialized startups. Key players in SBSP research and large-scale systems development often collaborate with government agencies, with companies like Airbus, Boeing, Lockheed Martin, and Northrop Grumman at the forefront. Emerging startups such as Solaren Corporation (US), Space Solar (UK), and others are also making significant strides in the commercialization of the SBSP orbital cloud network.

Changes to Tax Laws Affecting Solar Credits and Cloud Transactions

As part of the One Big Beautiful Bill signed into law by President Trump, commercial solar energy tax credits have been reduced, imposing strict deadlines and new requirements for eligibility, rather than being fully eliminated.

To qualify for the commercial solar tax credit, construction must commence on or before July 4, 2026. Generally, the project must be completed and operational within four years of its construction start date (e.g., a project starting in 2026 can be operational as late as 2030). For constructions beginning after July 4, 2026, projects must be operational by December 31, 2027, to be eligible for any credits.

Beginning construction after this date will result in the complete elimination of tax credits for commercial projects (under Section 48E) for facilities becoming operational after December 31, 2027, without meeting the construction commencement deadline.

Additionally, the IRS has ruled that income from cloud transactions will now be classified as service income, not property leases, effective January 14, 2025. This change can impact foreign tax credits and cross-border withholding tax planning for cloud companies.