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.
All this, and no mention of Sealand [0]? An unrecognized micronation in (formerly) international waters, with a hosting company (back then) that allowed almost everything, and its own coup and counter attack by the "legitimate" royals (and then Germany having to negotiate POW release of the coup organizer).
Aside from the counterpoints made by the other responders, this still won't work: you need a physical connection to those servers, and you can't just WiFi to servers thousands of kilometers away. So the servers need to be in another dimension, so you can access them without government interference.
That's the whole plan with the space servers.
As soon as we sort out a few problems, we're good to go.
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.
Wait a one minute, who owns those space Servers? The same guy who runs starlink? The one who uses that power to threaten to cut access to those who refuse to do his bidding?
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.
As someone extremely sceptical of musk, I do have some hope that competition between spacex and it's Chinese competitors will make space somewhat accessible to hobbyists.