1. Getting things to space is incredibly expensive
2. Ingress/egress are almost always a major bottleneck - how is bandwidth cheaper in space?
3. Chips must be “Rad-hard” - that is do more error correcting from ionizing radiation - there were entire teams at NASA dedicated to special hardware for this.
4. Gravity and atmospheric pressure actually do wonders for easy cooling. Heat is not dissipated in space like we are all used to and you must burn additional energy trying to move the heat generated away from source.
5. Energy production will be cheaper from earth due to mass manufacturing of necessary components in energy systems - space energy systems need novel technology where economies of scale are lost.
Would love for someone to make the case for why it actually makes total sense, because it’s really hard to see for me!
Elon musk has a history of making improbable-sounding promises (buy a tesla now, by 2018 it will be a self-driving robotaxi earning money while you sleep, humanoid robots, hyperloops).
The majority of these promises have sounded cool enough to enough people that the stock associated with him (TSLA) has made people literal millionaires just by holding onto the stock, and more and more people have bought in and thus have a financial interest in Musk's ventures being seen in a good light (since TSLA stock does not go up or down based on tesla's performance, it goes up or down based on the vibes of elon musk. It is not a car company stock, it is an elon vibes check).
The thing he's saying now pattern matches to be pretty similar, and so given Musk's goal is to gain money, and he gains money by TSLA and SpaceX stock going up, this makes perfect sense as a thing to say and even make minor motions towards in order to make him richer.
People will support it too since it pattern matches with the thing prior TSLA holders got rich off of, and so people will want to keep the musk vibes high so that their own $tsla holdings go to the moon.
Make sense now?
It is not just a number, as it is for people who just save a few dollars, for whom it really is just a number until they withdraw money to use it. The billionaire's money is not "money", it is actual working assets, and the abstraction of turning this into a number does a terrible job, the result now misunderstood by many. Assets being companies doing stuff mostly (holding non-control-giving paper assets is different and not what being a top capitalist is about, only used as an additional tool below the actual goal). Which they fully control (the small investor does not even have any control worth mentioning when they own shares of a public company).
They don't just play with money, they play with real things! And they want to play with ever bigger real things. They don't just want to improve some minor product. They want to control the fate of civilization.
OT:
I hate this money view with a passion, this is what too many people discussing wealth inequality issues get wrong. This is not Scrooge McDuck and his money pile. Money is an abstraction, and it is misused terribly, hiding what is actually going on for too many observers who then go on to discuss "numbers".
That is also why the idea to "just redistribute the money of the rich" is a failure. It isn't money! It is actual real complex organizations. And you can't just make everything into a public company, and also, even when they are, for better or worse owners don't lead like managers. Doing the socialism thing (I grew up in the GDR) where everybody owns a tiny bit of everything just does not work the same.
We will have to look at what those super-rich are actually doing, case by individual case of ownership, not just look at some abstract numbers. Sometimes concentrated control over a lot of assets is a good thing, and other times it is not. Ignoring the objection of "who would control that?", because right now they control themselves so it's never nobody.