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.
... and then you realize that because it is space, there's almost nothing out there to absorb the heat ...
new vc rule: no investing in space startups unless their founders have 1000 hours in KSP and 500 hours in children of a dead earth
If YC is hell bent on lighting piles of money on fire, I can think of some more enjoyable ways.