I don't know how that even got past the brainfart stage. AFAIK nobody has actually demonstrated how that would really work.
- Despite SpaceX's advancements in regards to things like resutable rockets, shooting stuff into space is still prohibitively expensive.
- Server clusters are exceptionally heavy.
- Server clusters run hot, cooling is not a triviality considering you can't just rely on convection in space, so more mass for alternative solutions.
- Datacenters need regular maintenace.
- Logic boards won't do well with the radiation in space.
- Despite SpaceX's advancements in regards to things like sattelite internet, getting large datacenter level quantities of data from earth into space and back, and at low latency, is no triviality.
Not saying this won't ever be a thing. But not in the lifetime of anybody on earth right now I don't think.