API Gateway caching encryption can be enabled and configured to encrypt the cache data while at rest. Encrypting the cache can help protect sensitive data while it is stored temporarily on disk. For more information on stage cache encryption, see the AWS API Gateway documentation.
References:
https://docs.aws.amazon.com/apigateway/latest/developerguide/data-protection-encryption.html
In AWS Console -
In Terraform -
References:
https://docs.aws.amazon.com/apigateway/latest/developerguide/api-gateway-caching.html
https://registry.terraform.io/providers/hashicorp/aws/latest/docs/resources/api_gateway_method_settings#cache_data_encrypted