Are we talking tiny satellites here and you can pack hundreds into one launch?
Yes. When they say "space datacenter" you might picture something the size of a regular datacenter with giant solar panels on it. Turns out those solar panels would have to be REALLY giant, and the radiators even more so. So giant that the structure required to hold it all together in orbit would be impractical. You've also got to keep the thing up there and probably have a staff to keep it running. So you launch lots of little satellites instead.
Starlink satellites seem to have about 5 kW of solar power on board, most of which is used for propulsion and communications. An Nvidia DGX is 8 GPUs in a box and uses about 10 kW so you're talking about something about three times the size of a Starlink. Facebook is building a 2 GW datacenter with ~1 million GPUs. If you were to put that in space you'd be talking about a few hundred thousand super-starlinks. Allow for some improvements in efficiency but also big increases in capacity and a million seems a little small.
Future Starship is supposed to be able to launch about 100 Starlinks at once. Maybe make that 30 super Starlinks. So a million is ~ ten launches a day for ten years.
They wouldn't all be up there at the same time though. When one broke you'd deorbit it. When it became obsolete or ran out of fuel you'd deorbit it. Starlinks are designed for about five years in orbit but at current rates your video cards would probably wear out faster.
Is it more practical than Sam Altman's terawatts of nukes? Maybe. Is it more practical than Facebook's (similarly sized) terrestrial datacentre? Lol no.