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Optimizing data models and reducing unnecessary calculations is crucial for enhancing report performance in Power BI. A well-structured data model ensures that data is efficiently organized, which leads to faster queries and a smoother user experience. By minimizing the complexity of your calculations, you reduce the computational load on the system, allowing it to process and load data more quickly.

When data models are optimized, it includes strategies such as removing redundant data, creating relationships appropriately, and using summarizations effectively. This not only speeds up the data retrieval process but also helps in managing memory usage, which is essential in large datasets.

In contrast, increasing data volume, adding more visuals, or using complex DAX formulas generally leads to decreased performance. Excessive data can burden the system, more visuals can complicate rendering times, and complex calculations may slow down data processing, all leading to a less responsive report. Hence, focusing on optimization is the best approach for improving overall report performance in Power BI.