Power BI’s performance can degrade when handling large datasets, complex models, or excessive calculated columns. Power BI development company must frequently optimize data models, reduce relationships, and use aggregations to ensure fast dashboard performance. However, these optimizations can limit the scope of analytics, forcing developers to compromise on advanced features or interactivity. Real-time DirectQuery connections, while useful, can further exacerbate performance problems. Balancing rich functionality with efficient performance is a persistent challenge for development companies, often requiring extensive testing and fine-tuning to meet client expectations.