We present an algorithm for computing Groebner bases of vanishing ideals of points that is optimized for the case when the number of points in the associated variety is less than the number of indeterminates. The algorithm first identifies a set of essential variables, which reduces the time complexity with respect to the number of indeterminates, and then uses PLU decompositions to reduce the time complexity with respect to the number of points. This gives a theoretical upper bound for its time complexity that is an order of magnitude lower than the known one for the standard Buchberger-Moeller algorithm if the number of indeterminates is much larger than the number of points. Comparison of implementations of our algorithm and the standard Buchberger-Moeller algorithm in Macaulay 2 confirm the theoretically predicted speedup. This work is motivated by recent applications of Groebner bases to the problem of network reconstruction in molecular biology.
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