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Optimizing Power BI dashboards involves improving data models, using aggregations, and minimizing the number of complex visuals. Developers can optimize performance by reducing data size through filtering, applying compression techniques, and using measures instead of calculated columns. It’s essential to limit real-time data queries and use cached data wherever possible. Additionally, using efficient DAX formulas and query folding can help push computations to the data source, reducing the load on Power BI and ensuring faster dashboard response times.