Of course it works, the question is how this would look like and if its financial feasable.
You make a H100, ship it to a space dock, load it onto a rocket (rocket requires fuuel, the rocket, etc.) send it up, deploy it, monitor it live 24/7, have means of adjusting its orbit, if it breaks, its immediade full loss, otherwise it will degenerate faster in space than on earth, now it needs a high speed up/downlink to do anything reasonable which also requires a base station. The base station has to track this satelite.
One H100 costs 40k, consumes 700 Watt peak and need probably at a minimum 5 square meter of area for cooling and solar.
The colossus datacenter from musk has 250.000 of these.
Now you have to track 250.000 single satelites, you have to coordinate the communication between the, up and downlink to earth.
250.000 * 5 square meter of area.
This alone increases the potential debris in space.
And this is ONE 300 MW Datacenter replacement. ONE.
Everything you wrote is some definition of hard, but all doable. None of this is purely in the territory of 'known' impossible(like FTL travel).
Now different people have different points where they quit when things get hard.
This is true for even everyday things in life. Quitting triggers exist for people at various points in the ladder. The end of ladder and path both exist, its upto you to decide if you wish to continue climbing, or give up and quit.
Your mileage may vary.