I mean for that matter why not float barges in the South Pacific for data centers? Sure it’s a dumb idea, but it’s still less problematic than launching thousands of GPUs on rockets.
Low earth orbit, though... Solar power works well, radio works well, and the international jurisdiction is confused enough to exploit if you have money.
It just means it’s protected by no power instead of a power with an agenda.
Practically, if it was ever possible to build such a thing, it would take a fraction of the effort to destroy it.