In space, that solar panel is always in the sunlight. No clouds, no night time. Weirdly enough, earth is a more challenging environment in some ways for solar. You need to lay out >3x the number of panels on earth to get the same power production, and you need batteries or a grid interconnection as a buffer.

Also, there's a populist backlash on building datacenters, power transmission infra, and power generation in many areas on earth. Locally, we have a number of people complaining about solar arrays going up on farmland, even though it's the farmers choosing to do it. "It's an eyesore".

You have to ask permission to build it somewhere. Nobody is going to stop you in space.

> Okay but why not take that slightly larger solar panel and leave it on Earth?

Because panel cap factor is about 10-20% to begin because day and night exists on earth. Say you wanted to power it on solar + batteries and picked Australia. You pick place that has decent port and most exposure, i.e. Port Hedland. In winter, daily average drops by 20%. Also because atmosphere - 30% less insolation when compared to space. Finally add 10-45% cooling losses.

Which effectively means you need something at least 10-20x more panels + batteries to match space.