Gdal doesn't do well with ultra-large rasters in my experience.

Locally we split our rasters up into tiles, process tiles in parallel with Gnu 
Parallel, then use gdal_merge or gdalwarp to join them back together (usually 
gdal_merge is faster).
This usually brings our processing times on high res national rasters down to 
tens-of-minutes instead of days. 

If the raster is formed from original polygon data e.g. gdal_rasterize output, 
be sure to use compression, it will improve performance and file storage by 1-2 
orders of magnitude. 

Graeme.

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