Presented in this paper is a fundamental mathematical basis for determining the lower bounds on power dissipation in digital signal processing (DSP) algorithms. This basis is derived f r om information-theoretic arguments. In particular, a digital signal processing algorithm is viewed a s a p r o c ess of information transfer with an inherent information transfer rate requirement of R bits/sec. Dierent architectures implementing a given algorithm are e quivalent to dierent communication networks each with a certain capacity C (also in bits/sec). The absolute lower bound on the power dissipation for any given architecture is then obtained by minimizing the signal power such that its channel capacity C is equal to the desired information transfer rate R. The proposed framework is employed to determine the lower-bounds for simple digital lters. Furthermore, lower bounds on the power dissipation achievable via adiabatic logic is also presented thus demonstrating the versatility of the proposed approach.