Given how much of a clusterfuck residential development and zoning restrictions are in SV, I wouldn't be the least bit surprised if Goolge would have to negotiate with many many governing bodies to roll out fiber in 'its back yard'. (Wasn't it San Mateo that blocked some Bart line extension back in the day? I remember a HN'er sharing that info with us a few months ago)
Maybe Austin is another city where one entity owns all the rights to the telecommunication poles and pipes. Even if that's not the case, Texas cities have proven to be more business friendly than California overall in the last decade. There's probably an incentive for State govt to coerce cities to work with Google to build infrastructure that will help business. Heck, it'll surely help Rackspace and other Datacenters to have a stronger backbone of internet bandwidth.