Unfortunately Google Desktop does not offer the ability to change the location of its index files. This is what you have to do if you want another location for the Google Desktop Data folder:

• 1. Stop Google Desktop (Right-click the tray icon->Exit)
• 2. Move Google Desktop Data directory to the desired location.
• 3. Run regedit (go to start -> Run… -> regedit)
• 4. Locate HKEY_CURRENT_USER\Software\Google\Google Desktop\data_dir
• 5. Change its value to the location, chosen in step 2
• 6. Start Google Desktop again

Handy especially when using small SSD's