a whole lot of Borat jokes.
Google has rejected demands from the Kazakhstan government that all local search requests should go through servers located in the country. The search giant usually routes requests via whichever server will deal with it most quickly. It described any change to this as an attempt to create borders on the internet. The order …
I do not think it just the fact that Google do not want to pay the local bribes to build a data center in the country.
I think it more to do with how Google Infrastructure is set up, Which is design so that any server with in its network of data centers can handle your request, this way Google can handle loads better and handle maintenance issues easier, shut one data center down in google network and the work that data center is doing is then spread among all of its other data centers automatically.
Even if Google built a data center in the country how it has design its systems means it could not guarantee that every request is handle with Kazakhstan as the law required.
It also set a presence, if one country succeeds in getting all the companies to move servers to within there country, every other country is also going to demand Google to build a server farm in there country, even if it is just as a job creation exercise rather than security issues.