Isolated environments with Transparent Data Encryption (TDE) change the way data stays locked down. The threat model has shifted. Perimeter security is no longer enough, and encryption at rest is not the final stop. When workloads run in isolated compute environments, physical and logical separation protects against whole classes of attacks. Add Transparent Data Encryption, and even if someone gets past the outer layers, the data is unreadable without the keys.
TDE encrypts the data files and transaction logs of a database in real time. The engine encrypts and decrypts data on the fly, invisible to the application. This means there is no need to rewrite queries or change schemas. In an isolated environment, TDE becomes even more powerful, because you reduce both the attack surface and the avenues for key theft.
There are multiple layers to doing this right. First, run workloads in an isolated environment with strict network controls and zero public exposure. Second, manage encryption keys securely, preferably with a hardware security module (HSM) or cloud key management system. Third, enforce least privilege at both the application and administrative levels. Finally, make sure monitoring and auditing are built into every layer so attempted breaches are visible in real time.