[modernpacifist]

Likely the intended meaning here is that the practicality of space data centers goes against the physical realities of operating in space. The single most prevalent issue with operating anything in space is heat dissipation in that the only method of doing so is via radiation of heat, which is very slow. Meanwhile, the latest Nvidia reference architectures convert such ungodly amounts of power into heat (and occasionally higher share prices) that they call for water cooling and extensive heat-exchange plant.

Even if one got the the economics of launching/connecting GPU racks into space into negligable territory and made great use of the abundent solar energy, the heat generated (and in space retained) by this equipment would prevent running it at 100% utilization as it does in terrestrial facilities.

In addition to each rack worth of equipment you'd need to achieve enough heat sink surface area to match the heat dissipation capabilities of water-cooled systems via radiation alone.