Proliferation of high speed, low cost computing systems has caused an explosion of data, leading to the need for higher and higher capacity storage systems and faster data transmission. The field of nuclear physics has felt this need acutely because data can be acquired at >100 Mbps, the data accumulated by a single collider can exceed hundreds of petabytes. Although much effort has gone into improving data storage, all approaches are severely limited by slow processing, high capacity memory requirements, and compression of heterogeneous data. Physical Optics Corporation (POC) has developed a preliminary prototype Multimode Intelligent Compression Engine (MICE) that overcomes many of the limitations of lossless data compression techniques for large scale data storage, retrieval, and processing. The MICE approach combines novel software/hardware. The key MICE innovation is a unique fuzzy logic artificial intelligence preprocessor that examines the incoming data in sections, on the fly, and applies optimum compression to each section. No a priori information is required about the data. The unique MICE hardware is based on POC's high speed, highly parallel processing technology. The hardware is compact and economical, and enables the system to compress data in real time.