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Power BI developers can optimize dashboard performance by minimizing the use of complex DAX calculations, reducing unnecessary data fields, and limiting the number of visuals on a report page. Query folding in Power Query ensures efficient data loading by pushing transformations to the source database. Power BI developer should also optimize data models by removing redundant data, using relationships effectively, and creating star schemas. Implementing row-level security and limiting data refreshes during report interactions also enhance performance, ensuring faster loading times and a smoother user experience.