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While we don’t often think about - or even care - how the Google search engine works, it is essential for us to know how Google bots work while fetching results to your search query. explains neatly the basic principles that drive the Big G.

Adding to above, here is another article explaining Google's indexing method and Page Rank algorithm. I found this more exhaustive and informative. A good read to say it simple!

Google runs on a distributed network of thousands of low-cost computers and can therefore carry out fast parallel processing. Parallel processing is a method of computation in which many calculations can be performed simultaneously, significantly speeding up data processing.