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.