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Power BI developers optimize dashboard performance by reducing the complexity of data models, using efficient DAX formulas, and minimizing the number of visuals on each page. They also leverage features like aggregations, incremental refresh, and optimized data types to speed up query processing. Developers may use Direct Query for large datasets to fetch only the necessary data in real-time, or implement dataflows to pre-process data before it reaches the dashboard. Regular performance testing and user feedback help identify bottlenecks, enabling developers to fine-tune the dashboard for faster load times and smoother interactions.