Power BI development handles real-time data through live connections and streaming datasets. With live connections, Power BI directly queries data sources like SQL Server or Azure Analysis Services without storing the data in Power BI. Streaming datasets allow real-time data to flow continuously into Power BI, enabling live updates on dashboards and reports. This is particularly useful for monitoring live metrics like sales performance, website traffic, or operational data. Real-time data capabilities enable businesses to react quickly to changes, making Power BI a powerful tool for time-sensitive decision-making.