The argument is that it's too hard to gain the necessary approvals on Earth such that space is faster and easier. Not sure I buy it fully (I do see it somewhat), but that's the argument.

The permitting slowdown is if it want to connect to the grid. If you want to run solar behind the meter, you can go nuts.

Sure but acquiring enough land to build solar profitably near a DC that can hook up to the big US interconnects is very expensive and will often be blocked by residents. If you want to build solar where there are few people and cheap input costs, then you need to transmit the power to the DC.

I keep hearing about brand new data centers they want to create. Seems reasonable to go to sunny, enormous, business friendly Texas and surround the data center site with acres of solar panels, batteries, emergency gas, and whatever sized grid connection you can get approved immediately.

If the DC is for training or text inference, latency seems irrelevant, so go where you can quickly plop down power.

Texas is actually absorbing a lot of the US's new generation capacity (though the grid there remains dirty)

It's fraught to make a DC for a single purpose because it reduces the value of the DC. A DC that serves multiple purposes can handle other workloads. Moreover even if inference is slow, latency does still matter, and it costs quite a bit to light up net capacity (you still have to run fiber to an interconnect and depending on how far you are, this can get expensive fast.)

I guess, but the amount of money getting thrown around is just stupid. Having to spend a few million to light up some more fiber is a drop in the bucket.

Supposedly some of the behind the meter gas turbines that have been getting installed are rated for a ten year service life. The DCs are burning them out in 10 months from rapid cycling. If they are willing to treat $10-100 million generators as disposable, cost seems irrelevant.