A data deduplication system includes a data deduplication subsystem coupled to each of a host system and a storage system. The data deduplication system receives data from the host system, generates a data deduplication identifier for the data, and determines whether the data deduplication identifier for the data is stored in a data deduplication database. In response to determining that the data deduplication identifier is not stored in the data deduplication database, the data deduplication system stores the data deduplication identifier for the data in the data deduplication database in association with a data counter for the data, and transmits the data to the storage system for storage. In response to determining that the data deduplication identifier is stored in the data deduplication database, the data deduplication system increments a data counter that is associated with the data deduplication identifier in the data deduplication database, and discards the data.