Is that the modern reference to octopus or the legendary reference to the mythic kraken sea creature?

The German word for octopus is indeed "Kraken", and looking at the pictures in the article linked by the GP, I'd bet on the former, rather than the latter.

There's a cultural connotation to the octopus: its tentacles reach everywhere. So, a likely translation for "Datenkrake" would be something like "data umbrella". We could also try "Big Data", in reference to "Big Pharma".