Systems, computer program products, and methods are described herein for a machine learning based system for optimized CPU utilization in data transformation. The present disclosure is configured to receive a new data segment; retrieve characteristics of the new data segment; determine, using a trained machine learning model, an encryption algorithm, and a compression algorithm for implementation on the new data segment based on at least the characteristics of the new data segment; determine, using the trained machine learning model, an order of implementation associated with the implementation of the encryption algorithm and the compression algorithm; and implement the encryption algorithm and the compression algorithm on the new data segment in the determined order of implementation.