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
On the ground, legal notions of private property provide some legal protections against national government interference. But there is no private real property in space. 100% of the volume of space is subject to the direct jurisdiction of terrestrial national governments. Every artificial satellite persists only because they are permitted to do so by their national government.
Because of the speed and energy involved, in the U.S. all private space activity is a matter of national security. This means that there are far fewer legal protections, not more. The U.S. president could directly order SpaceX to do almost anything, and they would have to comply. Musk spends tremendous energy and money maintaining alignment with the governments he needs to satisfy to stay in business.