Another thing that doesn't make sense about them is that DCs get a lot of out of physical locality. Caches become hot as different use case spin up and down during the day near their customers.

If the nodes are spinning around the earth at orbital velocities, then all the benefits of physical locality are thrown out the window.

But apologists would say that putting the data centers in LEO would mean that latency to a client via a ground station wouldn't be much more than ~50 ms extra. At least LATAM and Africa would be getting a good deal out of it with better coverage.