The problem is that the Padding isn’t transfered to the Border that’s in the Template for DataGridCell. You can edit the Template and add the TemplateBinding for Padding
<DataGrid ...>
<DataGrid.CellStyle>
<Style TargetType="DataGridCell">
<Setter Property="Padding" Value="20"/>
<Setter Property="Template">
<Setter.Value>
<ControlTemplate TargetType="{x:Type DataGridCell}">
<Border Padding="{TemplateBinding Padding}" BorderBrush="{TemplateBinding BorderBrush}" BorderThickness="{TemplateBinding BorderThickness}" Background="{TemplateBinding Background}" SnapsToDevicePixels="True">
<ContentPresenter SnapsToDevicePixels="{TemplateBinding SnapsToDevicePixels}"/>
</Border>
</ControlTemplate>
</Setter.Value>
</Setter>
</Style>
</DataGrid.CellStyle>
<!--...-->
</DataGrid>