Yes, it can. You still have to get rid of it eventually though, and do it faster than it's being generated. That's the problem in space. Look at the cooling required here in Earth, with an atmosphere and ready access to water. Now try doing that in space with none of that, using current or even near-future tech.
As an example, you talk about ejecting mass to get rid of heat. The most practical material to use would actually be water. A small 10MW data center would need about 250 TONS of water per day to absorbe that much heat (iron would need over 1000 tons). It would cost over 38 million dollars per day to replace that water and nearly 150 million for the iron. And that's just for one small data center.