Did you miss the phrase, for the sole purpose of enabling Google to provide you with the Service in accordance with its privacy policy? That phrase tells me that the ONLY thing they get permission to do with the data is use it for processing your requests.

And they definitely need that. In order to process requests, Google has to make a bunch of copies of your data, create models, etc. Furthermore Google will need to keep copies so that it can use the model it generated for future requests. If the data that you have uploaded is confidential, proprietary, etc, then this requires copyright permission. (Particularly since in the previous clause they made it clear that you retain full copyright.)