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.
I suspect this is really the fundamental idea behind this whole plan.