Abstract: In order to solve problem of efficient data storage and query under condition of large amount of data in coal mine software system, a scheme of applying SDT data compression algorithm into coal mine software system was proposed. Principle and application derivation of the algorithm were introduced, and decompression method and treatment method under special circumstances of analog and switching compression data were given. The application result shows that the algorithm has high compression ratio, saves great storage space, and can reflect trend and change of data.