Following the Encrypt disks with customer-supplied encryption keys:
By default, Compute Engine encrypts all data at rest. Compute Engine
handles and manages this encryption for you without any additional
actions on your part. However, if you wanted to control and manage
this encryption yourself, you can provide your own encryption keys.
If you provide your own encryption keys, Compute Engine uses your key
to protect the Google-generated keys used to encrypt and decrypt your
data. Only users who can provide the correct key can use resources
protected by a customer-supplied encryption key.
Google does not store your keys on its servers and cannot access your
protected data unless you provide the key. This also means that if you
forget or lose your key, there is no way for Google to recover the key
or to recover any data encrypted with the lost key.
When you delete a persistent disk, Google discards the cipher keys,
rendering the data irretrievable. This process is irreversible.
Type of issued storage depends on options you will specify:
Storage options will help you ensure the Zonal standard persistent disks
and Regional persistent disks
have:
-Encryption at rest: yes
-Custom encryption keys: yes
Follow the Encrypt disks with customer-supplied encryption keys procedure to encrypt new persistent disks with your own key. You cannot encrypt existing persistent disks with your own key.
Please pay attention to restrictions:
Compute Engine does not store encryption keys with instance templates, so you cannot use your own keys to encrypt disks in a managed instance group.
Hope this help you understand this topic