Official Gmail Blog: More extra storage for less

While storage costs have been dropping naturally, we've also been working hard to improve our infrastructure to reduce costs even further. Today, we're dramatically lowering our prices to make extra storage more affordable. You can now buy 20 GB for only $5 a year, twice as much storage for a quarter of the old price, and enough space for more than 10,000 full resolution pictures taken with a five megapixel camera. And if you need more than 20 GB, you can purchase up to 16 terabytes!