A method, a computing device, and a non-transitory machine-readable medium for allocating data compression activities in a storage system are provided. A method includes tracking, by a storage controller, computing resources corresponding to a storage server. The storage controller processes one or more host read requests to access data requested by one or more hosts, the processing of the one or more host read requests including decompressing the data requested by the one or more hosts from the storage server and providing the decompressed data to the one or more hosts. The storage controller determines an amount of available computing resources after processing the one or more host read requests. Based on the amount of available computing resources, the storage controller performs inline compression of a first portion of host write requests and background compression of a second portion of the host write requests.