Such an idea never made any real sense, and never will until you can figure out how to move IT infrastructure into a separate dimension where governments have no authority. Those servers have to sit somewhere.
In fact international waters if you're not flagged and registered to a specific country, then it's open season for anyone to board and seize you.
Problems: Solar flare & radiation resistance. Heat dissipation. Energy (more effective solar panels, for things as close to sun as we).
Partially solved - getting to orbit. And as much as we hate musk, SpaceX might solve it once Starships start flying commercially.
If we would separate energy part out and beam it somehow, we could sit in a body's shadow in some Lagrange point equivalent for a given body system and greatly reduce heat dissipation requirements and suspectibility to solar flares.
Come on, pull the other one, surely it can’t be that something so useful can be used as a tool for Mafia style politics.
Those that can’t pay or are politically undesirables, will be excluded from the global commons of space.
My take is that the great dream of unifying humanity through the internet won’t be helped by having it run in space.