With the rapid development of the digital era, challenges concerning user privacy, data surveillance, and individual autonomy have become increasingly pressing. This paper aims to explore the integration of Foucault’s Panopticism theory and the concept of data gaze into the design of interactive installations, creating a medium that reflects the characteristics of modern surveillance while stimulating public discourse on data privacy. We have designed and implemented an interactive installation, “Serious Space,” which integrates cameras, sensors, and computer vision algorithms to simulate the surveillance mechanisms of the panopticon prison. The installation transforms user behavioral data into real-time visual outputs, offering a direct representation of how data gaze operates in daily life. This design not only reveals the pervasiveness of data surveillance but also encourages users to critically reflect on their behaviors and privacy rights in the digital realm. The paper begins by reviewing the core tenets of Foucault’s Panopticism and analyzing its evolution in the context of digital technologies. Subsequently, the design process, technical implementation, and interaction mechanisms of “Serious Space” are described in detail. Based on user testing and feedback, the study evaluates the installation’s effectiveness in raising public awareness of data privacy and surveillance issues. Finally, the paper discusses the potential of interactive media design in fostering social dialogue and protecting user privacy, offering insights for future design practices.