**Abstract**

Internet of Things technology has advanced rapidly. For example, numerous sensors can be deployed in a city to collect a variety of data, and such data can be used to monitor the city's situation. A possible application of such data is smart metering implemented by power suppliers for their consumers; smart metering involves installing a multiplicity of smart meters that, in conjunction with data centers, form a smart grid. Because a smart gird must collect and send data automatically, the establishment of advanced metering infrastructure (AMI) constitutes the primary step to establishing a smart grid. However, problems remain in smart metering: data traffic from smart meters flows rapidly at a huge volume, resulting in bandwidth bottlenecks. Thus, this chapter proposes some data compression technologies as well as a novel scheme for reducing the communication data load in AMI architectures.

**Keywords:** smart grid, smart meter, concentrator, compression, advanced metering infrastructure, data traffic
