The property that I'm not seeing being discussed is effective sovereignty. A satellite data center is hardware that no one can physically access without enormous effort and expense. That could put them literally above the law in various respects, impossible to audit or shut down without the encryption keys or use of advanced weapons. If they start doing something especially objectionable to the public, protesters can't do anything to hinder their operation.
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The Epstein class would never!
Take every other problem away.
These satellites will be hundreds to thousands of meters apart in orbit. Why would anyone want to introduce transmission lag into their datacenters?
Correct
Surely wouldn't a very fundamental problem be that vacuum is an insulator, hence providing the datacenter no way tk stop overheating?
Scott Manley recently made a great video about this. He goes through (and explains it while doing so) a whole lot of rough math, and comes to the conclusion that cooling datacentre satelites is actually pretty doable.
Infrared radiators
If you look at pictures of the ISS, that's what the big white panels are for.
https://en.wikipedia.org/wiki/Spacecraft_thermal_control#Radiators