The more power you consume, the more power you need to dissipate. These constelations wouldn't be small at all. It would also take a interesting solution to be able to move this heat from very small very intense areas to very big cooling areas. How?
And space is not easy. Space is very very cold which puts a lot of stress on materials. It has radiation. And it has A LOT of microasteroids. Stuff in Space breaks down due to this. You would need to replace all of this stuff regularly with resources from the planet earth.
You would basically just spend a lot of resources throwing a lot of resources out into space. You can't even recycle all of this.
Its still lunatic at our current state of our current system. There is so so much space on our planet. Its ridicoulous
The only reason Musk is saying stuff like this is because he knows there is no market and he needs to keep his system alive