Data deduplication is the latest data compression method which will succours to reduce the data storage space by eliminating redundant data stored and keeps exactly one copy of the data. The amount of digital information is growing drastically due to increase in the use of internet and IoT [Internet of Things] devices. Since multiple users are dealing with same data, miscellaneous copies of same data may be generated and stored as multiple copies, which results huge amount of storage space requirements. By performing deduplication, exactly one physical copy of the data is stored and all duplicate copies of the data are referenced. So this technique eliminates storing multiple copies of the same data and save lot of storage space. It produces much better result than other text data compression methods.