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.
What (literally) on earth makes you say this? The arctic has excellent cooling and extremely poor sun exposure. Where would the energy come from?
A satellite in sun-synchronous orbit would have approximately 3-5X more energy generation than a terrestrial solar panel in the arctic. Additionally anything terrestrial needs maintenance for e.g. clearing dust and snow off of the panels (a major concern in deserts which would otherwise seem to be ideal locations).
There are so many more considerations that go into terrestrial generation. This is not to deny the criticism of orbital panels, but rather to encourage a real and apolitical engineering discussion.
Building 3-5x more solar plants in the Arctic, would still be cheaper than travelling to space. And that's ignoring that there are other, more efficient plants possible. Even just building a long powerline around the globe to fetch it from warmer regions would be cheaper.
Deserts have good sun exposure and land availability but extremely poor water resources, which is necessary for washing the sand off the panels. There are many challenges with scaling both terrestrial and orbital solar.