I was reading an article by Tom Foremski at www.zdnet.com about Google and found it quite interesting.
“Did you know that Google keeps a copy of every piece of data it ever comes across? That includes every web page (without images), search terms, and usage data such as time of day, IP address, etc. Google’s head of engineering told me more than two years ago that all the data gets saved onto onto tapes and is shipped to a storage facility. What will you do with that data I asked? We don’t know was the answer.”
I have seen Googleguy at webmaterworld say many times that they horde data. I don’t know what they could do with this data but it is scary. With all the new google tools like gmail and the toolbar they know who you are and what you are doing.