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.
Cooling isn't actually any more difficult than on Earth. You use large radiators and radiate to deep space. The radiators are much smaller than the solar arrays. "Oh but thermos bottles--" thermos bottles use a very low emissivity coating. Space radiators use a high emissivity coating. Literally every satellite manages to deal with heat rejection just fine, and with radiators (if needed) much smaller than the solar arrays.
Latency is potentially an issue if in a high orbit, but in LEO can be very small.
Equipment upgrades and maintenance is impossible? Literally, what is ISS, where this is done all the time?
Radiation shielding isn't free, but it's not necessarily that expensive either.
Orbital maintainence is not a serious problem with low cost launch.
The upside is effectively unlimited energy. No other place can give you terawatts of power. At that scale, this can be cheaper than terrestrially.