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.
This is widely believed (especially in the US, where, other than the Leaf, most early electric cars never launched), but honestly pretty dubious. The first real electric cars, with significant production:
2010 - Mitsubishi i-MiEV, Nissan Leaf
2011 - Smart electric, Volvo C30 electric, Ford Focus electric, BYD e6.
2012 - Renault Zoe (Renault launched a couple of other vehicles on the same platform ~2010, but they never saw significant production), Tesla Model S (Tesla had a prior car, the Roadster, but it never saw significant production).
2013 - VW eUP, eGolf (VW occasionally put out an electric Golf historically, going back to 1992, but again those were never produced in large quantities).
The big change ~2010 was around the economics of lithium ion batteries; they finally got cheap enough that everyone started pulling their concept designs and small-scale demonstration models into full production.