For follow-up discussion and general commentary on the topic. Comments are sorted chronologically.
The Bible talks about 3 heavens.
1. The first heaven is what we see with our natural eyes. It contains the Sun, moon, and stars.
2, The second heaven is where Satan and his fallen angels dwell. This is the place where Satan has his throne,
3, The third heaven is where God rules and reigns over the universe, assisted by His innumerable angelic host. This heaven is also known as Paradise.
The answer is that the Angels that followed Satan are in the Second heaven until God throws them into the Lake of Fire. It is the place of eternal punishment for the devil, his fallen angels, the Antichrist, the false prophet, and all who rejected Jesus Christ on this earth, (Rev 19:20; 20:10, 14-15)
(taken from The Three Heavens by John Hagee, which I recommend all to read)
The Bible begins it's profound description of Creation with these words: "In the beginning God created the heavens and the earth" Genesis 1:1