How can I encrypt the data config portion here?:
See: https://wiki.apache.org/solr/SolrConfigXml#System_property_substitution
You can keep them as properties in the file and refer them in your data config. So your data-config.xml will be like:
where everything in ${...} is a property in solrcore.properties like:
jdbc.host=http://127.0.0.1
jdbc.port=3306
db.name=emp
...