I just read that same page, Harry.  I think what they are saying in the passage you cite is that they store our emails (etc.).  Which of course they do.  I have millions of emails, going back decades, and they're all in Google's cloud, not on my laptop. 

But the same page seems very clear (to me) that they do not share any actual content with anyone, without our explicit permission. 

Best,

Dominik