The moon has:
- Some water
- Some materials that can be used to manufacture crude things (like heat sinks?)
- a ton of area to brute force the heat sink problem
- a surface to burry the data centers under to solve the radiation problem
- close enough to earth that remote controlled semi-automated robots work
I think this would only work if some powerful entity wanted to commit to a hyper-scale effort.
Almost any reason why the moon is better than in orbit is a point for putting it on earth.
I have long theorized there will be some game changing manufacturing processes that can only be done in a zero gravity environment. EX:
- 3d printing human organ replacements to solve the organ donor problem
- stronger materials
- 3d computer chips
I do not work in material science, so these crude ideas are just that, but the important part I'm getting at is that we can make things in space without any launches once that industry is bootstrapped.