"All the large institutions are doing it" has never resulted in disaster (see the dot com bubble and the great financial crisis).

It seems preposterous that building a data center and

launching it into space would be more practical than building a data center terrestrially. Every problem gets 10 to 100 times harder (Cooling, energy, how are you going to do maintenance on the thing, it's in space?)

The only thing that's easier is you don't have to do any local community engagement.

If a grid connection is the constraint on your project, building an islanded data center with a buttload of solar and batteries seems a lot more feasible than launching it into space. Then you have the option to build a grid connection later and monitize those resourcess.