The first thing to consider is that this thing won’t be stationary!
Geosynchronous orbit is much more expensive to reach per kg launched, even for Starship… when it starts working properly.
Lower orbits… aren’t stationary. Who wants a data centre that’s “over the horizon” from the owning country most of the time!?
If you think AWS egress costs are bad? Just add some zeroes! No, more zeroes than that…
Would probably need to negotiate for a huge amount of dedicated priority bandwidth, but latency shouldn't actually be that bad.
Of all the things insane about this proposal, I'm not very bothered about this one. It could be high availability and distributed by default. Like having redundant datacenters with eventual consistency on all continents. Except the continents are spinning really fast above you...
The animation is wild... 5GW concentrated up there at the top of a field of solar panels - it's not a Starcloud, it's an electric Starfurnace.
* while there could, in principle, be no extra infra in the last 200 km vertically, that means someone on the ground is talking directly to GEO. As per similar discussion about big PV space stations beaming power to the ground, your minimum ground spot size for a transmitter this big and this far away is still tens of km, which limits the other parts of your overall system design.
Fine for some applications, but a massive regression from modern fiber infrastructure and definitely not suitable for everything (just think how slow the modern web is even with 15ms connections to datacenters). There's a reason why Starlink & co are trying to set up communication satellites closer to the ground.