From VMware vSphere 7.0.2 you can configure a vSphere Native Key Provider (NKP) to enable encryption-related functionality from your vCenter.
The ESXi hosts do not require a TPM 2.0 chip to use NKP, but a TPM chip provides enhanced security.
How to configure NKP in vCenter#
- From your vSphere client choose your vCenter – Configure – Key providers under Security:

- Press “Add” and choose “Add Native Key Provider”

- Give your NKP a name
- If you leave the “Use key provider only with TPM protected ESXi host (Recommended)”-box checked the NKP can only be used by hosts with a TPM 2.0. If you want hosts without TPM to be able to use the NKP just uncheck it.
Your NKP will be configured and ready for use in about five minutes.