Google Desktop 3, the latest version of software that helps users find files on several PCs, copies personal text files to Google servers, which eventually routes them back to the PCs, USA Today reported.
Earlier versions merely indexed files, without storing copies at Google.
The company says the update aims to make finding and sharing information simpler.
"Too many people are working across multiple computers now," says Google Vice President Marissa Mayer. "This makes their lives easier."