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Buying Iceland makes a lot of sense:
1. as GG says, lots of Geothermal heat, that's gonna be needed to power the Googlpex plus provide power to the Space Station construction.
2. there is a great deal of hard igneous rock to build deep into to avoid potential attacks from Webmaster World etc, should they not be able to fix the current crop of issues that are keeping a couple of these threads going ;O)
3. Google have big balls (in their offices!), these would look great bouncing around on the glaciers and terminal morraines etc. The whole place would kind off turn into a big Orange (mobile phones) add!
4. They could all drive to work in those monster trucks that Icelanders are so fond of.
5. Reykjavik is the party capital of the world, serious drinking goes on, wild wild dancing in those clubs - good for Googlers social scene.
6. It's nicely set up position wise to benefit from NATO protection while not being a superpower itself in the traditional sense and thus avoiding the pitfalls of superpowerdom while in effect subversively becoming one unoticed.
7. Icelanders are one of the longest living races on the planet - the Phds at Googlelpex may be looking at seriously long term genetic world domination, so longevity combined with 5. above could produce interesting results!
Now that google has established a remote spot in the Atlantic I was wondering if they would be interested in a spot in the Pacific. I own a great little remote island in the Pacific, Tahiti, that I can give Google a great deal on. But hurry with your offer I do have other interested parties.