Modern cities produce vast streams of heterogeneous data, from infrastructure maps to mobility logs and satellite imagery. However, integrating these sources into coherent spatial models for planning and prediction remains a major challenge. Existing agent-centric methods often rely on direct environmental sensing, limiting scalability and raising privacy concerns. This paper introduces CubeletWorld, a novel framework for representing and analyzing urban environments through a discretized 3D grid of spatial units called cubelets. This abstraction enables privacy-preserving modeling by embedding diverse data signals, such as infrastructure, movement, or environmental indicators, into localized cubelet states. CubeletWorld supports downstream tasks such as planning, navigation, and occupancy prediction without requiring agent-driven sensing. To evaluate this paradigm, we propose the CubeletWorld State Prediction task, which involves predicting the cubelet state using a realistic dataset containing various urban elements like streets and buildings through this discretized representation. We explore a range of modified core models suitable for our setting and analyze challenges posed by increasing spatial granularity, specifically the issue of sparsity in representation and scalability of baselines. In contrast to existing 3D occupancy prediction models, our cubelet-centric approach focuses on inferring state at the spatial unit level, enabling greater generalizability across regions and improved privacy compliance. Our results demonstrate that CubeletWorld offers a flexible and extensible framework for learning from complex urban data, and it opens up new possibilities for scalable simulation and decision support in domains such as socio-demographic modeling, environmental monitoring, and emergency response. The code and datasets can be downloaded from here.