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This is a quote from Gmail: Help Center, according to the nice ppl at google,

G is for growth. Storage is an important part of email, but that doesn't mean you should have to worry about it. To celebrate our one-year birthday, we're giving everyone one more gigabyte. But why stop the party there? Our plan is to continue growing your storage beyond 2GBs by giving you more space as we are able. We know that email will only become more important in people's lives, and we want Gmail to keep up with our users and their needs. From Gmail, you can expect more.

Have you ever wondered where google store all these emails? Imagine 2 gb per person... I can only imagine the number of servers in their premise. Come to think of it, we all used to have a limit of 2mb in our free email accounts (hotmail still provides 2mb per account... #$%^&*).

Anyways, here's something I found on a tech forum while looking for a solution to my computer trojan problem yesterday and coincidently I received this via email from Dillon as well. This is how google get all the storage space...

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Now we know where all the recent earthquakes come from. :P