diff --git a/src/gt4py/next/program_processors/runners/dace_iterator/__init__.py b/src/gt4py/next/program_processors/runners/dace_iterator/__init__.py
index f78d90095c..25609b1035 100644
--- a/src/gt4py/next/program_processors/runners/dace_iterator/__init__.py
+++ b/src/gt4py/next/program_processors/runners/dace_iterator/__init__.py
@@ -16,6 +16,8 @@
 
 import dace
 import numpy as np
+from dace.codegen.compiled_sdfg import CompiledSDFG
+from dace.transformation.auto import auto_optimize as autoopt
 
 import gt4py.next.iterator.ir as itir
 from gt4py.next import common
@@ -29,6 +31,14 @@
 from .utility import connectivity_identifier, filter_neighbor_tables
 
 
+""" Default build configuration in DaCe backend """
+_build_type = "Release"
+# removing  -ffast-math from DaCe default compiler args in order to support isfinite/isinf/isnan built-ins
+_cpu_args = (
+    "-std=c++14 -fPIC -Wall -Wextra -O3 -march=native -Wno-unused-parameter -Wno-unused-label"
+)
+
+
 def convert_arg(arg: Any):
     if common.is_field(arg):
         sorted_dims = sorted(enumerate(arg.__gt_dims__), key=lambda v: v[1].value)
@@ -85,17 +95,67 @@ def get_stride_args(
     return stride_args
 
 
+_build_cache_cpu: dict[int, CompiledSDFG] = {}
+_build_cache_gpu: dict[int, CompiledSDFG] = {}
+
+
+def get_cache_id(*cache_args) -> int:
+    return sum([hash(str(arg)) for arg in cache_args])
+
+
 @program_executor
 def run_dace_iterator(program: itir.FencilDefinition, *args, **kwargs) -> None:
+    # build parameters
+    auto_optimize = kwargs.get("auto_optimize", False)
+    build_type = kwargs.get("build_type", "RelWithDebInfo")
+    run_on_gpu = kwargs.get("run_on_gpu", False)
+    build_cache = kwargs.get("build_cache", None)
+    # ITIR parameters
     column_axis = kwargs.get("column_axis", None)
     offset_provider = kwargs["offset_provider"]
-    neighbor_tables = filter_neighbor_tables(offset_provider)
 
-    program = preprocess_program(program, offset_provider)
     arg_types = [type_translation.from_value(arg) for arg in args]
-    sdfg_genenerator = ItirToSDFG(arg_types, offset_provider, column_axis)
-    sdfg: dace.SDFG = sdfg_genenerator.visit(program)
-    sdfg.simplify()
+    neighbor_tables = filter_neighbor_tables(offset_provider)
+
+    cache_id = get_cache_id(program, *arg_types, column_axis)
+    if build_cache is not None and cache_id in build_cache:
+        # retrieve SDFG program from build cache
+        sdfg_program = build_cache[cache_id]
+        sdfg = sdfg_program.sdfg
+    else:
+        # visit ITIR and generate SDFG
+        program = preprocess_program(program, offset_provider)
+        sdfg_genenerator = ItirToSDFG(arg_types, offset_provider, column_axis)
+        sdfg = sdfg_genenerator.visit(program)
+        sdfg.simplify()
+
+        # set array storage for GPU execution
+        if run_on_gpu:
+            device = dace.DeviceType.GPU
+            sdfg._name = f"{sdfg.name}_gpu"
+            for _, _, array in sdfg.arrays_recursive():
+                if not array.transient:
+                    array.storage = dace.dtypes.StorageType.GPU_Global
+        else:
+            device = dace.DeviceType.CPU
+
+        # run DaCe auto-optimization heuristics
+        if auto_optimize:
+            # TODO Investigate how symbol definitions improve autoopt transformations,
+            #      in which case the cache table should take the symbols map into account.
+            symbols: dict[str, int] = {}
+            sdfg = autoopt.auto_optimize(sdfg, device, symbols=symbols)
+
+        # compile SDFG and retrieve SDFG program
+        sdfg.build_folder = cache._session_cache_dir_path / ".dacecache"
+        with dace.config.temporary_config():
+            dace.config.Config.set("compiler", "build_type", value=build_type)
+            dace.config.Config.set("compiler", "cpu", "args", value=_cpu_args)
+            sdfg_program = sdfg.compile(validate=False)
+
+        # store SDFG program in build cache
+        if build_cache is not None:
+            build_cache[cache_id] = sdfg_program
 
     dace_args = get_args(program.params, args)
     dace_field_args = {n: v for n, v in dace_args.items() if not np.isscalar(v)}
@@ -105,8 +165,6 @@ def run_dace_iterator(program: itir.FencilDefinition, *args, **kwargs) -> None:
     dace_strides = get_stride_args(sdfg.arrays, dace_field_args)
     dace_conn_stirdes = get_stride_args(sdfg.arrays, dace_conn_args)
 
-    sdfg.build_folder = cache._session_cache_dir_path / ".dacecache"
-
     all_args = {
         **dace_args,
         **dace_conn_args,
@@ -120,9 +178,32 @@ def run_dace_iterator(program: itir.FencilDefinition, *args, **kwargs) -> None:
         for key, value in all_args.items()
         if key in sdfg.signature_arglist(with_types=False)
     }
+
     with dace.config.temporary_config():
         dace.config.Config.set("compiler", "allow_view_arguments", value=True)
-        dace.config.Config.set("compiler", "build_type", value="Debug")
-        dace.config.Config.set("compiler", "cpu", "args", value="-O0")
         dace.config.Config.set("frontend", "check_args", value=True)
-        sdfg(**expected_args)
+        sdfg_program(**expected_args)
+
+
+@program_executor
+def run_dace_cpu(program: itir.FencilDefinition, *args, **kwargs) -> None:
+    run_dace_iterator(
+        program,
+        *args,
+        **kwargs,
+        build_cache=_build_cache_cpu,
+        build_type=_build_type,
+        run_on_gpu=False,
+    )
+
+
+@program_executor
+def run_dace_gpu(program: itir.FencilDefinition, *args, **kwargs) -> None:
+    run_dace_iterator(
+        program,
+        *args,
+        **kwargs,
+        build_cache=_build_cache_gpu,
+        build_type=_build_type,
+        run_on_gpu=True,
+    )