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In today's fastest growing IT industry Cloud Computing is gaining much more popularity because the Cloud providers feel that it is very easy to manage the data in the cloud environment rather than normal web-sites in form of simple web pages. Every day the data seeking is being done by many users immensely. Here due to immense number of users seeking the data on daily basis there is a serious security concerns to the cloud providers as well as the data providers who put their data on the cloud computing environment. This paper provides solution of the security issues of cloud computing with the help of Hidden Markov Model based Clustering using data mining Techniques which can be very fruitful technique to detect any kind of intrusion detection in the network.