"fantastically expensive"

From individual POV yes, but already Falcons are not that expensive. In the sense that it is feasible for a relatively unimportant entity to buy their launch services.

"The satellite is built on Earth, so I’m not sure how it dodges any of those regulations practically."

It is easier to shop for jurisdiction when it comes to manufacturing, especially if your design is simple enough - which it has to be in order to run unattended for years. If you outsource the manufacturing to N chosen factories in different locations, you can always respond to local pressure by moving out of that particular country. In effect, you just rent time and services of a factory that can produce tons of other products.

A data center is much more expensive to build and move around. Once you build it in some location, you are committed quite seriously to staying there.