Reliable energy? Possible, but difficult -- need plenty of batteries
Cooling? Very difficult. Where does the heat transfer to?
Latency? Highly variable.
Equipment upgrades and maintenance? Impossible.
Radiation shielding? Not free.
Decommissioning? Potentially dangerous!
Orbital maintenance? Gotta install engines on your datacenter and keep them fueled.
There's no upside, it's only downsides as far as I can tell.
For your other concerns, the risks are worth it for customers because of the main reward: No laws or governments in space! Technically, the datacenter company could be found liable but not for traffic, only for take-down refusals. Physical security is the most important security. For a lot of potential clients, simply making sure human access to the device is difficult is worth data-loss,latency and reliability issues.