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If you're using a raidz array (which you should) the data would be irrecoverable anyways when you dispose of a single drive, wouldn't it? Also, why would you throw away a server drive that still works?
Why should I use a raidz array? I use other scalable storage solutions. Encryption at rest is a standard core tenant to cybersecurity. If one of the raidz drives is removed from the array, and you’re not encrypting your datasets, someone could recover data from the drive.
Well, if you're storing data you care about on your server you kind of need to have redundancy. The best filesystem for that (imo) is ZFS so yes, you should use that (or something similar). Apparently you do use a "scalable storage solution" but you also seem fond of mystery.
The solution is in the question. Just encrypt the dataset.