Perhaps there will be communications nodes in LEO with high bandwidth directional links to heavy compute nodes in higher orbits? At some point I would assume that the jurisdiction of the FCC no longer applies? Or maybe you use laser links?

I still cannot believe it's economical to have "data centers in orbit" but I guess the truth will be seen in whether or not it actually happens.

Depends how cheap they can launch them.

Even very optimistic estimates (by people who aren't Elon Musk) say it will take a decade to get the costs low enough to be worthwhile for LEO; higher orbits are much more expensive.