For handling large datasets, developers should implement incremental data refresh to reduce processing time. Aggregating data into summary tables can optimize performance for commonly used metrics. Limiting the data imported into Power BI by filtering and summarizing at the source is essential. Partitioning datasets based on time or other logical segments ensures efficient refreshes. Using Direct Query mode allows querying large datasets on-demand without importing them. Power BI development should also monitor and optimize DAX queries and ensure that database indexes support the queries used in reports.