There's another way to look at it, though. If the data center satellites can be built and launched cheap enough, you can still come out ahead on performance/cost. I.e. if the space data center has 1/10 the performance of a ground one, and they can be built and launched for less than 10% of the cost, then you've got a business. And there are costs that won't be incurred - no electric bill, no cost for land, no charge for maintenance.
* no electric bill: if you use solar panels to provide your own power, you also have no electric bill on Earth.
* no cost for land: land in sunny places where crops don't grow (for instance) is good for solar power and very cheap compared to building out a datacenter
* no charge for maintenance: sorry, I really don't get this one. Why don't the computers in space need any maintenance?
There's another way to look at it, though. If the data center satellites can be built and launched cheap enough, you can still come out ahead on performance/cost. I.e. if the space data center has 1/10 the performance of a ground one, and they can be built and launched for less than 10% of the cost, then you've got a business. And there are costs that won't be incurred - no electric bill, no cost for land, no charge for maintenance.
I wouldn't be too quick to dismiss Musk.
* no electric bill: if you use solar panels to provide your own power, you also have no electric bill on Earth.
* no cost for land: land in sunny places where crops don't grow (for instance) is good for solar power and very cheap compared to building out a datacenter
* no charge for maintenance: sorry, I really don't get this one. Why don't the computers in space need any maintenance?
Why do your magic space computers not require maintenance?