Abstract To solve the problem of reducing the amount of data storage in the practical application of massive biomedical data and efficiently using existing storage devices and bandwidth resources to store shared data. The proposed model includes both compression modes: the first is a single sequence compression mode designed for the characteristics of a large number of repeated substrings in DNA sequences; the second is a reference‐based multi‐sequence compression mode designed for the very similar characteristics of DNA sequences of different individuals of the same species. Both types of compression use the Lempel–Ziv–Welch (LZ) compression method, which is quite comparable to one another, to examine the sequence, as well as to study and classify the repetitive data that exists between a single sequence and numerous sequences in the sequence set. The proposed method aims to solve the problem of high pressure caused by single‐point processing of large sequence files, effectively reduces redundant information by using the local correlation of data, and effectively uses the computing resources of a cloud platform that is used for biological information processing to support the efficient storage, transmission, and sharing of data.