The Internet of Things (IoT) facilitates the creation of incredibly complex and efficient inter-connection of devices with embedded components that are capable of sensing, generating, and transmitting data. These data can produce significant insights for the future of the IoT for enabling better user experience and for helping businesses to realize efficient real-time processes. Some data can be of a sensitive nature and can have profound security implications. A massive increase in data attracts additional security risks and processing related issues. In fact, most of the IoT systems are not well engineered and protected enough to deal with these issues. Hence, to develop advanced techniques and models for dealing with bulk data, it is essential to take into consideration the underlying factors and challenges associated with them. This chapter aims to outline the key factors leading to the data explosion in the IoT, along with the challenges involved in handling the explosion. In addition, it presents the role of advanced technological paradigms in countering these challenges.