Edge computing effectively reduces latency in data processing by bringing computation and data storage closer to the source of data generation, such as IoT devices. This proximity enables faster data analysis and decision-making, as it eliminates the need to send all data to centralized cloud servers. By processing data near its origin, edge computing minimizes delays, enhances real-time data processing, and reduces bandwidth usage, which is particularly critical in scenarios requiring immediate responsiveness, such as autonomous vehicles or remote monitoring systems.