Space is a vacuum. i.e. The lack-of-a-thing that makes a thermos great at keeping your drink hot. A satellite is, if nothing else, a fantastic thermos. A data center in space would necessarily rely completely on cooling by radiation, unlike a terrestrial data center that can make use of convection and conduction. You can't just pipe heat out into the atmosphere or build a heat exchanger. You can't exchange heat with vacuum. You can only radiate heat into it.
Heat is going to limit the compute that can be done in a satellite data centre and radiative cooling solutions are going to massively increase weight. It makes far more sense to build data centers in the arctic.
Musk is up to something here. This could be another hyperloop (i.e. A distracting promise meant to sabotage competition). It could be a legal dodge. It could be a power grab. What it will not be is a useful source of computing power. Anyone who takes this venture seriously is probably going to be burned.
But now looking back and accounting for the claims he made there's a pattern.
I saw this article:
https://www.wired.com/story/theres-a-very-simple-pattern-to-...
that said... he did jumpstart the EV industry. He has put up satellites every week for years. He is still a net benefit to all of us.
Talk to any former SpaceX or Tesla employee. They will clue you in that both were successful in spite of Elon, not because of him.
The Cybertruck was really the first product he saw to completion from his own design. And well...