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.
That.
Also, am I the only one to remember when SpaceX was supposed to pivot to transporting people from cities to cities, given how cheap and reusable and sure BFF/Starship was going to be ?
Or how we were all going to earn money by pooling our full self driving cars in a network of robo taxis ?
In all seriousness, what is the number of "unrealized sci-fi pipe dreams" that is acceptable from the owner a company ? Or, to be fair, what is the acceptable ratio of "pipe dreams" / "actually impressive stuff actually delivered (reusable rockets, starlink, decent EVs, etc...)" ?