Austin is the perfect choice and should have been the first choice.
Austin is a modern city with a lot of high tech industry. It is the home base of Dell. Many other companies including Google, Apple, Blizzard Entertainment, Samsung, Facebook, and Cisco have operations in Austin.
Austin has several colleges and universities, including the University of Texas Austin, which has one of the top 10 computer science programs in the country.
Austin has a large creative community, ranging from the locals that give the city the slogan "keep Austin weird" on up to Robert Rodriguez's Troublemaker Studios (maker of films including Sin City and Spy Kids).
Austin is a state capitol, meaning government support is accessible.
Austin is home to SXSW - a collection of festivals and conventions for music, film, and technology. Everyone with an interest in the future of the Internet attends SXSW.
And last but not least, the people that made the decision knew they would get to make site trips during installation and eat barbecue at the Salt-lick.