The hardest thing about AI datacenters is power. The second hardest thing is cooling. All of these are physical challenges and exponentially harder in space.

So why do it? Because datacenter regulations on earth are becoming a referendum by proxy on AI. "Texas has no jurisdiction in low earth orbit!" is the general idea. Critics point out that this is a transparent move to moot the argument over AI, and that it doesn't even work in principle, due to above mentioned physics.