> Anyone who was not in the area will be excluded from the list, therefore letting the police know where I wasn't at the time.

No, at best this only shows that your google linked device (presumably a phone) did not have location information for that area at the specific time.

Alternatively it suggests the device could have been switched off/disconnected from the network to hide your presence - making you really a suspect of interest if your name comes into the investigation for some reason.

Dragnet approaches to law enforcement are inherently wrong. They unreasonably cast suspicion on everyone without any good basis and reverse the accepted safeguard that your guilt requires to be proven, and replace it with the idea that you require to prove your innocence.