In one set of embodiments, confidential data needed by a workload component running within a worker VM can be placed on an encrypted virtual disk that is attached to the worker VM and hardware-based attestation can be used to validate the worker VM's software and isolate its guest memory from its hypervisor. Upon successful completion of this attestation process, a data decryption key can be delivered to the worker VM via a secure channel established via the attestation, such that the hypervisor cannot read or alter the key. The worker VM can then decrypt the contents of the encrypted virtual disk using the data decryption key, thereby granting the workload component access to the confidential data.