There's a pretty big benefit to the solar panels: more efficient and also can be placed in a solar-synchronous orbit that is always illuminated. I can't imagine that power advantage outweighs the disadvantages of cooling power-hungry hardware with no way to reject that heat to air or water. I'm with you: WTF are they thinking?

I heard Google just launched a test bed. Basically one mini server the size of a refrigerator that can only operate for 15 minutes before it needs to shut off to prevent heat damage. I'm guessing that thing will prove the case against celestial data centers, but we'll see. The only good thing to come of this is that it might help advance cooling tech for satellites and suchlike.