I would say equally stupid. Data centers essentially have two inputs and two outputs (obviously a lot more in real life), data/electricity and data/heat, respectively. All of those are easier on the ground, but removing heat makes it an absolute deal breaker in space. You simply can’t radiate that much heat in space. You would need unrealistically large surface area exposed to the vacuum of space.

Musk is an idiot, but I'm sure he was salivating over all the potential launch fees SpaceX would rake in if some doo-doo brain decided to actually haul a chip foundry into orbit.

Best place was the ocean, which Microsoft tried and decided it wasn’t worth it.