Digitimes has a post with the rumor that Google has purchased a site for a data center in Taiwan.
Google rumored to set up regional cloud computing data center in Taiwan
Marvin Ma, Taipei; Adam Hwang, DIGITIMES [Tuesday 22 February 2011]
There is a report around the Taiwan bourse that Google will invest NT$1 billion (US$34.1 million) to acquire a 15-hectare site in a government-developed industrial park located in a coastal area of central Taiwan for establishing a regional cloud computing data center. In response, Google's PR representatives in Taiwan declined to comment.
Since this is a rumor, how about if Google set up server design team in Taiwan? Given the number of hardware engineers Google wants to hire, they may find it is better value to hire Taiwan engineers. Here is my post on the Google hardware positions open.