Google is involved with the digitization of various European treasures and even with the Iraqi National Museum, and is now collaborating with the Israeli Antiquities Authority to digitize the Dead Sea Scrolls using multi-spectral imaging. Read the AFP article online. Pretty pictures, here. I am not sure when the project will be completed.
Wieland Willker has provided this link to the official IAA release on the subject. The funding for this project is private, and Google is not involved with the actual digitization project. Digitization will begin sometime in 2011.