grelmar - 2:53 am on Dec 25, 2010 (gmt 0)
@maurice - willyb nailed part of it. There are a great many use cases where latency is at least as key an issue as bandwidth. Without getting into TOS violating details, where I work now every millisecond of latency we can knock off is $$ in the bank, and we're not in the high frequency trading business. There are many cases where high accuracy synchronization and low latency are the supreme technical challenge. Within the laws of physics (we can't beat the speed of light), getting our latency from North Am to, say, India, below 100ms is critical, and this is nearly impossible to achieve consistently unless you're sitting directly on top of one of the core fiber exchanges. If all you're thinking about is serving up content, then it just isn't an issue for you. Once you get into dealing with persistent two way data synchronization, you're dealing with whole new levels of engineering challenges, and latency can make or break a project.
Google isn't just about search or advertising anymore. If those were their only concerns, then latency wouldn't matter.
@J_RaD - They've been a tenant there for a number of years. What they've done now is to acquire the building and protect themselves from the vagaries of leasing agreements.