It's not like Elon is a stranger to low margin. Making cars is low margin, and it's not like SpaceX has crazy margins now that we know the financials.

Also I think stuff like Hetzner is a commodity. But are gigawatt scale data centers a commodity? You need those for AI training.

Anyways their goal is datacenters in space, not traditional data centers. Although I think that's only viable for inference.