A regular set of servers will straight up be destroyed if put on a rocket and launched into space: the motherboards and PCBs aren't mounted or rated to survive the vibration. The connectors and wiring isn't rated for that vibration. Sure, some probably make it, but you will lose machines from just launching them alone. Any electrolytic capacitors in there? If your system exposes them to vacuum or even just low pressure, then those likely die too. Solar panels? We can launch them obviously, there's a reason people send up expensive solar panels: because you're doing a lot of work making sure they'll physically survive the launch.
So of course, now you have to build a space-rated server frame, PCBs and GPUs. You ain't going to buying bulk H100's from Nvidia. And you have to package and mount it to get it both survive the launch and physically fit into the payload bay. Then you have to add a deployment system for it, sensors etc. And then you have to add an assembly system, because if it doesn't fit in one launch (you're proposing 250+ launches for power alone) then all of these systems need to be assembled in orbit. How are they going to be assembled? How are they going to be maneuvered? Even if you could rendezvous accurately with the construction orbit, we're talking months of drift from every little thing knocking stuff around, putting it into a spin, etc.
So either each of these is now a fully contained satellite, complete with manoeuvering system and power, or you're also needing to develop a robotic assembly system - with power and manoeuevering in order to manage and assemble all this.
And let's not forget mission control: every single one of these steps is incurring a bunch of labor costs to have people manage it. And not cheap labor costs: you're going from "guys who roll racks in and plug stuff in and can be trained up easily" to "space mission control operators".
Is this doable? Probably. Is this going to be in anyway cheaper then Earth? Not in the slightest, and it's not going to be close.