Understanding n8n’s Core Philosophy on Data
At its heart, n8n’s approach to data security and privacy is built on a foundation of control and transparency. How n8n handles your data fundamentally depends on one crucial choice: whether you use a self-hosted instance or the managed n8n Cloud. For self-hosted users, your data, credentials, and workflow executions remain entirely within your own infrastructure, never passing through n8n’s servers. For n8n Cloud users, data is processed in secure, GDPR-compliant European data centers, with n8n acting as a transparent data processor. In both scenarios, credentials are encrypted at rest, and any optional diagnostic data collection is clearly defined, ensuring you’re always in the driver’s seat.
The Core Principle: You’re in Control
Before we dive into the nitty-gritty, let’s get one thing straight: n8n is designed to give you power. As a source-available platform, its primary security feature is the choice it offers. This choice boils down to two main paths, and understanding the difference is key to grasping how n8n handles data security and privacy.
Think of it like building a house. With self-hosting, you own the land and the house itself. You decide on the locks, the alarm system, and who gets a key. Your data is your property, on your land. With n8n Cloud, you’re renting a high-security apartment in a state-of-the-art building. The management company (n8n) handles the building’s security, maintenance, and compliance, but what happens inside your apartment is still your business. Both are incredibly secure, but the responsibility model is different.
How n8n Handles Data Security: A Tale of Two Setups
So, where does your data actually live? The answer dictates the entire security conversation.
The Self-Hosted Fortress: Maximum Control
When you self-host n8n (for example, on your own server or using Docker), you achieve the highest level of data isolation. Let me be crystal clear: your workflow data never, ever leaves your infrastructure. It flows from one service to another as you’ve defined, all orchestrated from your own server.
But what about your precious API keys and passwords? n8n encrypts all credentials before saving them to your database. For this to work, it’s crucial to set a custom, secure `N8N_ENCRYPTION_KEY` as an environment variable. If you don’t set one, n8n will use a default key, which is far less secure. Let’s be honest about this: not setting your own encryption key is like leaving the master key under the doormat.
Actionable Advice: Your n8n instance is only as secure as the server it lives on. Make sure you’re following server hardening best practices, using firewalls, and keeping your system and Docker images up-to-date.
The n8n Cloud Convenience: Managed Security
If managing servers isn’t your cup of tea, n8n Cloud is the perfect alternative. Here, n8n takes on the role of a “data processor” under GDPR. This means they handle the infrastructure security, so you can focus on building.
Your data is hosted in highly secure, top-tier data centers in Germany (operated by Hetzner and Microsoft Azure), ensuring GDPR compliance is baked in from the start. n8n’s Terms of Service include a Data Processing Agreement (DPA) and the latest Standard Contractual Clauses (SCCs), providing a robust legal framework for your data’s protection.
Let’s Talk Credentials (Because They’re Everything)
Whether you’re self-hosting or on the cloud, credentials are encrypted at rest. They are never logged in plain text, and they are not included in any diagnostic data that n8n might collect (more on that in a bit).
A Real-World Example: Building for Clients
I often get asked by new automation consultants, “How do I handle my client’s credentials?” This is where security meets professional ethics. Based on my experience and community best practices, the answer is simple: don’t handle them.
The best practice is to have your client set up their own n8n instance (Cloud or self-hosted). You, the developer, are then granted access to their instance. The client adds their *own* OpenAI, Google, and other credentials to their own account. This way:
- The client retains full control and ownership of their keys.
- You are not liable for their credentials.
- If your professional relationship ends, they can simply revoke your access without needing to rotate all their API keys.
Hosting multiple clients on a single n8n instance is a security and privacy minefield. Just don’t do it. Separate instances are the only trustworthy way forward.
What About Privacy and Data Collection?
This is a big one. n8n is transparent about the optional, anonymous usage data it collects to improve the product. This is often called telemetry.
What n8n Collects (and More Importantly, What It Doesn’t)
n8n is very careful to avoid collecting sensitive information. The goal is to understand how the tool is used, not what it’s used for.
| What n8n Collects (Anonymously) | What n8n NEVER Collects |
|---|---|
| Workflow structure (node types used, connections) | Your actual workflow execution data (the info passing through) |
| Error codes and messages (without any payload data) | Any values from your credentials (API keys, passwords) |
| Anonymous instance ID, n8n version, OS info | Sensitive settings (database connections, etc.) |
| UI interactions (like which nodes are searched for) | Personally Identifiable Information (PII) |
For self-hosted users who want to be completely off-the-grid, you can easily opt out by setting the `N8N_DIAGNOSTICS_ENABLED=false` environment variable.
The AI Assistant and Your Data
With the rise of AI, it’s natural to ask where your data goes when you use the AI Assistant. n8n has been thoughtful here. When you use the AI features, it only sends the *context* of your workflow—like node configurations, schemas, and any code in a Code node—to the language model. It does *not* send your credentials or the actual data being processed by your workflow. This data is used only to generate a response and is deleted after 30 days; it’s not used for model training.
Final Thoughts: Security is a Partnership
So, how does n8n handle data security and privacy? By providing a flexible, transparent, and powerful platform where you can choose the level of control that’s right for you. Whether you build your own fortress with a self-hosted instance or move into the high-security managed apartment of n8n Cloud, the tools are there.
Ultimately, security is a partnership. n8n provides a secure foundation, and you build upon it with smart practices like strong passwords, role-based access control, and a clear understanding of where your data lives. By embracing this shared responsibility, you can automate with confidence, knowing your data is in safe hands—often, your own.
