you can use aws glue service to convert you pipe format data to parquet format , and thus you can achieve data compression . Now you should choose Redshift to copy your data as it is very huge. To manage your data, you should partition your data in S3 bucket and also divide your data across the redshift cluster

First of all you should make your choice upon Redshift or Athena based on your use case since they are two very diferent services - Redshift is an enterprise-grade MPP Data Warehouse while Athena is a SQL layer on top of S3 with limited performance. If performance is a key factor, users are going to execute unpredictable queries and direct and managing costs are not a problem I'd definitely go for Redshift. If performance is not so critical and queries will be predictable somewhat I'd go for Athena.

Once you select the technology you'll need to optimize your data in order to get the queries executed as fast as possible. In both cases you may need to adapt the data model to fit your queries better. In the case you go for Athena you'd also proabably need to change your file format to Parquet or Avro and review your partition strategy depending on your most frequent type of query. If you choose Redshift you'll need to ingest the data from your files into it and maybe carry out some tuning tasks for performance gain.

I'll recommend Redshift for now since it can address a wider range of use cases, but we could give you better advice if you described your use case in depth.