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
Worried about natural disasters? Build some place less prone to natural disasters.
Worried about the strain on local communities? Build some place more remote.
Worried about energy availability? Build near a nuclear power plant or hydroelectric power station.
Worried about hostile governments? Don't build data centers within the territories of hostile governments. (If you consider every country a hostile government, that is a you-problem.)
For the cost of building a data center in space, you could instead build a second (or third, or fourth, ...) data center somewhere else.