Genuinely: regulation. Every other benefit is conceptual at best. If SpaceX controls the entire heavy launch market _and_ they control data-centers in space, then absolutely no one on earth is in a position to control or regulate such a data-center except SpaceX themselves.

I'm not arguing that it's a good idea, but that is the idea.

you can build datacenters on international waters, and that'd likely be cheaper no?

a boat + demolition material are way cheaper than a rocket + demolition material, but that's not counting micrometeorites and such.

still seems like a daft idea all in all, or a very distant one at least.

It's a convenient way to merge AI and spacetech, two hot topics to the retared investor class that rules our world. The reality and feasibility of it doesn't matter.