I too don't think it's currently a sensible solution. But the author completely unable to make a proper case. For instance, just to refute that one claim, there are many reasons to do it in space even at an cost.
Space-based data centers provide an off-world backup that is immune to Earth-specific disasters like earthquakes, floods, fires, or grid collapses. Servers in orbit are physically isolated from terrestrial threats, making them safe from riots, local warfare, or physical break-ins.
Moving infrastructure to space solves local community disputes by removing the strain on residential power grids and freeing up land for housing or nature. Space data centers do not deplete Earth’s freshwater supply for cooling, unlike terrestrial centers which consume billions of gallons annually.
Solar panels in orbit can access high-intensity sunlight 24 hours a day without interference from clouds, night, or the atmosphere.
Data stored in space can exist outside of national borders, protecting it from seizure, censorship, or the legal jurisdiction of unstable governments. Data transmission can be faster in space because light travels roughly 30% faster in a vacuum than it does through fiber optic cables.
Processing data directly in orbit is necessary for satellites and future space stations to avoid the delay and cost of beaming raw data back to Earth
You also underestimate the cooling problem. The fact that space is cold doesn’t mean it’s easy to cool things off in space. On earth the main cooling strategy is to transfer heat through direct contact and move the hot stuff away. Be it air or water, as you mentioned. In space your only option is to radiate heat away. And that’s while half of you is under intense sunlight.
I think you also undersell the thread of warfare in space. Sure, a guy with Molotov can’t get you space data center but we’ve had satellite shot down. So maybe not every war is a threat but, say China or Russia (or other space-faring nation) could take care of a satellite if absolutely needed.
National seizures are also still a threat. If only being outside national borders was such a great defense we’d see some data centers in the sea by now.
So being in space is immune to some of the known problems but also comes with a whole lot of novel issues, not solved at scale yet. And so far I haven’t seen any sufficiently detailed proposed solutions to even consider the trade of known problems with readily available solutions for new issues with lots of unknowns.