Space data centers are physically possible but don't make financial sense. The total cost of an orbital datacenter over five years is at least 2–3x that of a terrestrial one. But those economics don't matter to SpaceX, because the main purpose of its orbital data centers is to create a use case for Starship. Starship has to fly frequently to iron out the kinks, encounter and fix rare (1/1000) failure situations, and…
2-3x sounds like a very low estimate. There’s so much data center capacity being built all over the Earth. Thousands of large projects across US / China / Europe / Middle East. It would be astonishing if something that’s never been done before could be so cost-competitive immediately. Starlink wasn’t the first time LEO communications constellations were attempted. Multiple 1990s projects did it (Iridium, GlobalStar…)…
https://newsletter.semianalysis.com/p/to-boldly-go-the-case-...