Data Encryption in SQL Server — Examples & 2025 Guide

Data encryption in SQL Server is a crucial technique for protecting sensitive business data — such as financial records, customer details, and proprietary information — from unauthorized access. Whether your organization must comply with regulations (like GDPR or HIPAA) or simply wants to establish best-in-class database security, encrypting data at rest and in transit is non-negotiable in 2025. Yet, knowing how to implement encryption—using features like Transparent Data Encryption (TDE), column-level encryption, or Always Encrypted—can be a daunting task for teams without deep SQL expertise.

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Popular Encryption Methods in SQL Server

• Transparent Data Encryption (TDE): Encrypts the entire database at the storage level, requiring no code changes.

• Column-Level Encryption: Protects specific, sensitive columns using built-in functions like EncryptByKey.

• Always Encrypted: Lets client applications encrypt/decrypt data transparently, enhancing security and compliance.

Real-World Examples: SQL Server Encryption

Example 1: Enabling Transparent Data Encryption (TDE)

-- Create a master key
CREATE MASTER KEY ENCRYPTION BY PASSWORD = 'YourStrongPassword!';

-- Create a certificate
CREATE CERTIFICATE MyTDECert WITH SUBJECT = 'TDE Cert';

-- Create a database encryption key
USE YourDatabase;
CREATE DATABASE ENCRYPTION KEY
WITH ALGORITHM = AES_256
ENCRYPTION BY SERVER CERTIFICATE MyTDECert;

-- Enable encryption
ALTER DATABASE YourDatabase SET ENCRYPTION ON;

Example 2: Encrypting a Column Value

-- Create a symmetric key
CREATE SYMMETRIC KEY SymKey_Test
WITH ALGORITHM = AES_256
ENCRYPTION BY PASSWORD = 'AnotherStrongPassword!';

-- Open the key and encrypt data
OPEN SYMMETRIC KEY SymKey_Test DECRYPTION BY PASSWORD = 'AnotherStrongPassword!';
UPDATE Customers
SET CreditCardNumber = ENCRYPTBYKEY(KEY_GUID('SymKey_Test'), CreditCardNumber);
CLOSE SYMMETRIC KEY SymKey_Test;

Example 3: Reading Encrypted Data

-- Open key and decrypt column
OPEN SYMMETRIC KEY SymKey_Test DECRYPTION BY PASSWORD = 'AnotherStrongPassword!';
SELECT CustomerID, CONVERT(varchar, DECRYPTBYKEY(CreditCardNumber)) AS DecryptedCC
FROM Customers;
CLOSE SYMMETRIC KEY SymKey_Test;

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Mini Benchmark: Encryption Methods Compared

Best Practices for SQL Server Data Encryption

• Rotate encryption keys regularly and store them securely.

• Encrypt only what is needed: minimize performance overhead.

• Document your encryption policies for compliance and audits.

• Monitor access and log decryption events to catch risky activity.

If you want to try these SQL statements yourself or automate encryption for your own tables, check out our Try AI2sql Data Encryption SQL Generator, explore the Data Encryption SQL Server Tutorial, or review advanced Data Encryption SQL Server Examples. Visit the AI2sql platform to access all features.

Conclusion

Data encryption in SQL Server is an essential tool for modern organizations striving to secure sensitive data against breaches, theft, or leaks. While the technicalities of TDE, column-level encryption, and related SQL best practices can be complex, using AI2sql puts robust, compliant encryption scripts within easy reach—no coding required, with instant and enterprise-ready solutions. Start safeguarding your mission-critical business data today.

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