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> no one has made a convincing case as to why putting a data center in space is a benefit that can come anywhere near the drawbacks

Permitting. And the main drawback is cooling. If you want to sell a company to SpaceX, build a better radiator.

I’m not saying the math maths. But it isn’t fundamentally fucked in the way a lot of armchair commentary has been making it out to be.

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Even permitting isn't a clear win. You are changing from land permitting (where you can pick the location to be wherever you want) to launch permitting (where you have to coordinate with the federal government for airspace and water closures). Not to mention that with the current regulatory status, a rocket explosion can easily lead to a multi-month mandatory safety review that blocks all new launches.
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