Could you build a data center in space? Yes, absolutely I am sure there are no physical barriers. We have computers in space now, and those computers have telecom links to Earth.
Without even going into the numbers, terrestrial data centers have significant cost advantages. They don't have to spend $$$$$$$ to get to orbit. They can upgrade and/or fix components easily (likely safe to assume a hypothetical orbital DC would plan to never replace anything). They don't have to pay for the full capex of their power generation facilities. Lower-latency Internet. Heat dissipation is a (possibly unsolved?) problem. For every input cost to a data center, moving it to orbit massively increases that cost.
From a pure engineering standpoint: orbital data centers are not optimized to solve any common problem faced by data center operators or users. Permitting can get difficult in parts of the US, but at least permitting is a solved problem.
I think you're understating the permitting problem - it's a major reason for the very large/rapid price hikes on power in the PJM region, and the populist backlash against data center construction, including moratoriums on DC construction. The difficulty in getting new electrical generation interconnected in many parts of the US is one of the major marks in favor of the plan.
If you think launching a rack costs 100k, I think you need to continue your napkin math or youre not being true to yourself.
A GB300 costs about 70k, a rack is 72 of them.
The cost to launch is less than 2% overhead. Its is extremely feasible.