A company wants to encrypt data locally while meeting regulatory requirements related to key exhaustion. The encryption key can be no more than 10 days old or encrypt more than 2^16 objects. Any encryption key must be generated on a FIPS-validated hardware security module (HSM). The company is cost-conscious, as it plans to upload an average of 100 objects to Amazon S3 each second for sustained operations across 5 data producers.
Which approach MOST efficiently meets the company's needs?