Ann-Sofie Nordh — Head of Investor Relations, ABB
Yes, let's do so. And just a quick reminder for those who have dialed in on the phone, please press star 14 to register to ask a question. And also, please remember to mute the webcast as your line is opened and limit the question to one, please. That way, we allow for as many as possible to be heard. You can also put your question through the online tool in the webcast, and I will voice them over from here. And with that said, I suggest we go for the first question, and we open the line for Martin at Citi. Is your line open, Martin?
Martin Wilkie — Co-Head of Industrial Tech and Mobility, Citi
Thank you. Good morning, it's Martin at Citmari. The question I had was on Electrification and how we're thinking about pricing and volume. It sounds like you had good orders there again in both utilities and data center. Are we now in a market where that's, when you talk about double digit there, that it's really volume? So essentially, pricing is now sort of normalized or flattish, and that double digit comment is effectively a volume comment for order intake. Thank you.
Morten Wierod — CEO, ABB
Yeah, we can make that very short, really, and say yes. That's the short, very short answer. We see a bit positive pricing. Of course, this is an average. I always say on a global business, there are the average of maybe half a point of price increase, but that is the average between some geographies where you have stronger pricing and others where we even see deflation. And taking U.S. and China as two examples there. So. The pricing is not a big factor for this quarter. It is really driven by units and growth in the number of units.
Martin Wilkie — Co-Head of Industrial Tech and Mobility, Citi
Thank you. And there was one question just to clarify on that, because obviously there was some debate last year about normalizing supply, particularly in medium voltage and lead times, normalizing and so forth. But there's been no adverse effect of that on pricing. It looks like we've kind of gone to a normalized level of price as opposed to giving up any of the price that we saw and benefited from over the last 12 months or so.
Morten Wierod — CEO, ABB
Correct. That is what we see in the marketplace. The capacity, I mean, kind of demand-supply, probably a bit better balance, but still strong demand, as we see on the order numbers. And that has also been reflecting that the pricing is staying very stable.
Martin Wilkie — Co-Head of Industrial Tech and Mobility, Citi
Great. Thank you very much.
Ann-Sofie Nordh — Head of Investor Relations, ABB
Okay. Thank you. And we'll take one question here from the online setup. And here's one from Gael at Deutsche Bank. He's asking about that large order. Which client vertical is behind that order? And do we see more of these larger orders coming through?
Morten Wierod — CEO, ABB
Yeah, we're not allowed to give you the name of the order of the client. What we can say, as you see in the numbers, it's a multi-year order that sits in the service business. It's in process automation. It's good quality orders. And that's kind of where we leave it. We are happy to see this kind of long-term order that goes into our order backlog when they come at good margins. But we're not, if the question is leading to if you're going to kind of move back to EPC business or large projects, that is not the case. This is a multi-year service order that we will take quite many years to execute. But it's always good to get it into the backlog.
Ann-Sofie Nordh — Head of Investor Relations, ABB
Very good. And then we open the line for Max at Morgan Stanley. Max, are you with us?
Max Yates — Analyst, Morgan Stanley
Hi, thank you. Thank you. And good morning. Just, I guess the question I had was just around data centers. So obviously, improved kind of data center order performance. We know you were affected kind of last quarter because of the single hyperscalers sort of changing their ordering plans. Maybe if you could just comment, is the improvement in data center just down to that customer kind of normalizing their behavior and going back to ordering, or are you actually seeing a sequential acceleration in data center demand? And maybe also, if you could give us some color around what are your sales doing? What kind of growth are your sales doing in the second quarter, and what should we expect for the full year? Thank you.
Morten Wierod — CEO, ABB
Now, on the data center, we had a very positive and a good strong development in the second quarter, double-digit growth. And that is across the board from all clients. Of course, there are others where we have much higher growth than others, but. This is the average of the whole segment. And it's also positive to see this is, of course, a lot in North America, but it's really a global, that is the global number. And we see a good data center growth also in China, in Asia, and also in Europe. So that is really across the board. And it has also given us the confidence for also for the rest of the year that the statement of double-digit growth for the segment will remain.
And also for the years to come, as when we talk with either the hyperscalers and the kind of large clients in this industry, they're not going backwards. There is significant investment planned, new investment planned for the coming years. You've seen some of the announcements in the news, like Stargate and others. So therefore, our confidence is really high. And maybe, Timo, you comment anything? We don't do the revenue breakdown.
Timo Ihamuotila — CFO, ABB
No, I don't. I'm not going to go there.
Morten Wierod — CEO, ABB
No.
Then you can say. It's solid growth, of course, there as well.
Ann-Sofie Nordh — Head of Investor Relations, ABB
Very good.
Max Yates — Analyst, Morgan Stanley
Okay, understood. Thank you very much.
Ann-Sofie Nordh — Head of Investor Relations, ABB
Thanks, Max, and then we take the next question from Daniela at Goldman.
Daniela Costa — Analyst, Goldman
Hi, good morning. It's actually sort of a follow-up on these topics, on the very strong growth. You've mentioned double-digit growth in data centers, but also interested on how do you assess internally, both on data centers or on the low-voltage parts in electrification products? What is potential prebuy versus what is underlying growth? I'm more of a conceptual company of how a company like yourself internally, in terms of systems, can have the visibility to distinguish these two things so that we can be confident this is really underlying demand.
Morten Wierod — CEO, ABB
Oh. Yeah, I mean, we have a very good transparency on what is the kind of end user point, but also because we know that from our client base on where it sits. So we can, with a, I would say, very high accuracy, know both by region and down to customer and client levels. And some of it is because you have different SKUs even that have special features that are required in the data center industry that we have agreed with some of our larger clients. So that's how we also are able to track this very well. It's not a Timo coming up with some crazy numbers here. It is coming from our system with a good tracking of, and sometimes even down to SKU level that are being used in this industry.
Yeah, and we, of course, follow.
Sorry, go ahead. Go ahead.
Daniela Costa — Analyst, Goldman
No, I was just going to, I was just wondering, have clients ever in the past, in any cycle, told you when they were prebuying stuff? And is there a possibility that they go back and cancel this, or these are all firm orders?
Morten Wierod — CEO, ABB
Yeah. We don't see a pattern of prebuying, but of course, these are orders where we place now, which have pretty long lead times. And therefore, there are clear terms and conditions around contracts, including, as you say, cancellation fees and others that will take place if that comes. But we haven't, in general, seen that in these segments. It's more about how can we book capacity. But it's not just to book capacity. You need to have that into a dedicated project because as the data centers develop. You also, and in size and the technical solutions will be different. Then you need, so it's not that easy to prebuy. You need to know what you want to buy, what's the technical design, and then you can place an order. So orders we have today do often have lead times from 12, -24 months.
That is kind of more the cycle because it goes also into civil works and other things on the site that needs to be aligned.
Timo Ihamuotila — CFO, ABB
Yeah, I was just going to say that more often you see that kind of where it's more difficult to follow in the channel business, where, of course, you don't exactly always know how the inventory is on that side developed. But I think in this area, very unlikely that there would be any prebuying. And we, of course, also have the kind of order pipeline, which we follow probability weighted. So we also see kind of what is coming longer term.
Daniela Costa — Analyst, Goldman
Okay. But in low voltage, you also don't see prebuy?
Timo Ihamuotila — CFO, ABB
No.
Daniela Costa — Analyst, Goldman
Got it. Thank you very much. That's helpful.
Ann-Sofie Nordh — Head of Investor Relations, ABB
Prebuys done and dusted. Okay. Maybe it's a question for you, Timo. How confident are you to reach your full year guidance of mid-single-digit revenue growth, given the ongoing uncertainties in the business environment?
Timo Ihamuotila — CFO, ABB
Yeah, okay. Thanks for the question. So basically, when we look at our performance now, we have been at 5% growth first half, so kind of rounding in there. And then when we look at our backlog, we actually expect about 5% conversion from the backlog. So backlog is clearly higher at record level, $25 billion. So our conversion is a little slower, but still, actually, we have approximately 5.5 points coming from that. And then also, I mean, we guided sort of a little higher revenue, at least mid-single digit, and also had strong order growth in our short cycle orders on high single digit. So with all that in, even with the economic uncertainty, we actually feel quite good about where we are at the moment.
Ann-Sofie Nordh — Head of Investor Relations, ABB
Very good. And then we take a question from the conference call, and that's Andrei from UBS. Your line should be open.
Andrei Kukhnin — Analyst, UBS
Hi, good morning. Thank you very much for taking my question. I just wanted to touch on the formation of the new high power division within Motion. I thought before we were moving kind of more towards, I could say, higher fragmentation. Or looking at smaller and smaller pieces within each subsegment of each business area. Is that not kind of the move the other way? And is this something that you expect to cover at the Capital Markets Day, that kind of more granular look at smaller individual businesses with ABB? And maybe while at that, is there anything else that we should be looking forward to at that Capital Markets Day?
Ann-Sofie Nordh — Head of Investor Relations, ABB
One or three. I'm not sure.
Timo Ihamuotila — CFO, ABB
Thanks, Andrei. I won't give any spoilers of the Capital Market Day today.
Morten Wierod — CEO, ABB
Kind of like what we welcome in the video.
So we'll do it there. But let me comment on the new high power division as part of Motion. They have today seven divisions. They will now have six going forward. The reason of looking at these two, it's not a trend that ABB will kind of merge a lot of divisions, but it is for. We have now with the business line transparency, as we have better now in the divisions, we looked at what are more of standalone and where it's very tightly connected. And that's why kind of the basis of this. There is a lot of large motors and large drives, which is designed together as one package. If it sits, for instance, on board a ship, or it sits in a cement plant or in a pulp and paper plant, these kind of solutions need to be designed together.
So from completely different technologies between motors and drives, but it's the combination of the two because the drive is controlling the motor and therefore, it also needs to have a common design. So that is this system and solution thinking that it holds the two together and the customer will buy it as one package. They will not buy a motor from the, this is not from the shelf motor and from the shelf drive. This is really designed as a system together. And that's why we said that going to market, there are advantages and therefore, we believe that we can take out some cost on one side when it comes to administration, but we believe also when it comes to serving the customer will be even better in this setup where you kind of, because you win the package or you lose the package together.
So sometimes you need to take a bit of a cross division, or now it will be inside one division to make that decision to take the whole package or to lose the package. That's one decision to make and not two. So that's the majority of the reason behind it.
Ann-Sofie Nordh — Head of Investor Relations, ABB
Very good. And then there's a question here from Ben Heelan. He would like to know about Machine Automation. And in Q1, you talked about moving into a more normal ordering pattern on Machine Automation. Do you still see this?
Timo Ihamuotila — CFO, ABB
Yeah, what we talked about earlier was that we had inventory sitting out at our customers, the machine builder customers that they had over-ordered in the semiconductor crisis time. We see that those inventories, and we have transparency on that, that those inventories are now down to more of a normal level. That means that the order intake reflects more the real market demand and not kind of taking down or ramping up inventory levels. So we still see a bit of slowness in the whole overall machine builder market. That's probably where we do see some of the uncertainty in this market. But the kind of. So now the demand in the market is the same as our order intake. So that effect is now taken out of the equation.
Ann-Sofie Nordh — Head of Investor Relations, ABB
And then we take a question from James at Redburn. James, can you hear us?
James Moore — Partner, Redburn
Good morning, everyone. Thanks, Ann-Sofie. And great to see your 9% electrification order growth. And I hear all your message about grid and data center being very strong. Compared to others, you've got quite a big exposure to industrial. And over the years, we've been seeing a greening of heavy industry trying to become more decarbonized and the likes. Is that momentum slowing post-Trump where perhaps green tech agendas have faded somewhat? Could you talk about the pace of growth in industrial and that theme, please?
Timo Ihamuotila — CFO, ABB
No, happy to do so. You're right that the best way to decarbonize your operation is to go electric. That's kind of the ultimate solution. But there is another point to it. The best way also to reduce your cost in your operation is to go electric. I can use an example where a steel company in India, to be competitive versus Chinese steel imports, they're looking at how do we become more productive in our steel production and we're helping them to go from a coal-based furnace to electric furnace. And of course, it's a decarbonization topic, but that's not the motivation. It's a productivity gain. So our technology and the whole electrification is not only about greenification, it's also about productivity. So when we're talking about making industries leaner and cleaner, this normally goes together. It's not one or the other. It's both.
And that is where the electrification trends play in many industries today, that it's not just to decarbonize. That's kind of the icing of the cake. It's to become more productive because it has lower operating cost and lower maintenance cost when you do it with electric solutions compared with others. And I see just also to mention on the electrification side in the United States, there we see that there may be a shift or a trend from renewable power generation to more into the gas side, LNG. But for us as ABB, what we see is that the electricity consumption is going up. And how you generate that electricity, we will be part of it either, say, on renewable or on the LNG side. So for us, it really doesn't matter.
What part, if you look at from a pure financial performance, we will have content and we'll be part of that, both of the grid integration, but also a lot of those solutions that are being used. So that doesn't really affect. On a personal note, I think we need every source of energy. Also in the United States, but also here in Europe. So I think it's not taking only one solution ahead of another. We're playing in every of these grounds, and I think we will see that also next year when we need more energy or more electricity will come from multiple sources.
James Moore — Partner, Redburn
Thanks very much.
Ann-Sofie Nordh — Head of Investor Relations, ABB
Thanks, James. And we take the next question and open the line from Jon at BNP Paribas.
Jon Mounsey — Analyst, BNP Paribas
Thank you, Ann-Sofie, for feeding me in. Yeah, maybe a question. On trading, particularly in China. So we're plus two on the orders now. I guess the picture might be quite mixed across the various China end markets. And could you comment on that, particularly on recent trading as we headed into Q3? And just on that Q3 comment, I see a significant event after Q2. I think the Robotics business launched three new robot families in China, specifically to target the mid-market. Is that purely just an opportunity to take more, share more revenue, or is it also a reflection of competitive trends, perhaps in the higher end? Sort of a need to compete more aggressively with local competitors?
Morten Wierod — CEO, ABB
Yeah, I think that, I mean, as you said, we had 2% order growth in China in Q2 where there was also a bit of a mix of the different, between the business areas. But overall the trend, what we talked about earlier, strong growth in data center, strong growth in renewables on the industrial side, but weakness in building and especially residential buildings are still on a weak side. Our projection is that they will remain for quite some time. Kind of a, it's a bit like the inventory of apartments that need to come down. It's too high. No need for new capacity. That it's going to take some time. When you look at Robotics, I think this is a great opportunity of now coming with three new robotic families. They're addressing mostly the mid-market and lighter applications.
It's what we have talked about earlier where we had some gaps that we needed to fill, also to compete. A lot of customers asking for this kind of solution. We're very pleased to see that this is now being available out in the marketplace. That's for me, a great opportunity for the Robotics team to really fight with the same tools or guns in that marketplace. It's a great local for local initiatives, it's designed in China, manufactured in China, and it's sold with our Chinese system integrators and partners in China. I think that's a really kind of the best example of when we talk about local for local, this is what we mean about it.
Timo Ihamuotila — CFO, ABB
Can I add one thing there? So actually, in our Motion business, we had a pretty good growth now in China and exactly following the strategy. So kind of like, for example, in drive products, they have really made a lot of work to localize the product. And I think we are seeing now a little bit of benefits of that. So that's actually really nice to see. And of course, would expect similar to happen in Robotics as well.
Ann-Sofie Nordh — Head of Investor Relations, ABB
Very good. And then we take the next question from, thanks, Jonathan. And then we take Will at Kepler. Hello, Will.
Will Mackie — Head of Capital Goods Research, Kepler
Good morning, Anthony. Good morning, Morten, Timo. Yeah, my one question would go to the subject of capital allocation. I think if we go back to October when you kicked off, Morten, you were confident about a positive pipeline of deals. There have been a few, but I wonder how are you shaping up the team to accelerate the capital allocation process from a bolt-on perspective bottom up? But more importantly, perhaps what are the sort of range of transformational transactions that you're looking at at the moment? And how should we see capital allocation developing over the next six or nine months? Thank you.
Morten Wierod — CEO, ABB
Thanks, Will. As you said, the skill set is here a bit twofold. First, is that what we need to do on bolt-ons. That sits very much with our operating divisions and there we are building pipeline and we are doing deals and as you also referred to, we are asking the divisions to be a bit bolder and to make some bigger deals. We did quite many in the $30 million-$50 million or up to $100 million range. We are okay also that the divisions take a bit of a bigger leap, could even make two, three, up to $500 million. So that's the one side of how we, when we talk about bolt-ons. Then we're looking at the more transformative deals and the bigger ones. That sits very much on the table of the business areas. And of course, also with Timo and myself.
And our corporate team when you're looking at larger deals. And that is something we are working on. We are also having a pipeline. It is developing. But as you always know, we're not going to announce any deals or what we should do on these calls. We do that when we have done them. But what we committed to and what I committed to almost a year ago when we did Q3 still very much remains.
Ann-Sofie Nordh — Head of Investor Relations, ABB
Very good.
Will Mackie — Head of Capital Goods Research, Kepler
Thank you.
Ann-Sofie Nordh — Head of Investor Relations, ABB
Thanks, Will. And then we have one question here from Olof at Danske Bank. He's asking about Germany. Switching geographies here. Orders up 16% in Germany versus a decline earlier on. What's driving this? And are we seeing any impact from stimulus packages announced?
Morten Wierod — CEO, ABB
Yeah, the growth in Germany comes in three out of four. It was the only Electrification where we didn't see growth. We had there also some higher comparables from last year. This is more a project business that we have booked in Germany. We don't see any kind of real effect on stimulus packages yet. I think there is still, I mean, this takes time to go through the process, through the different levels organizational-wise, especially on government spending. We're talking about that Germany has made decision-making on country level, but you know it needs to go down to the regions and the money being and budgets really being made available. And that's not something we see when we talk about the market yet. So that is more a thing to come.
And especially if you look at the building markets, which is important for us in Germany, there we don't see it yet, but we know that the demand and the need is clearly there. And there is more about giving permits and getting the planning process going, which is, but we know kind of the decision on top level is made. Now it's the execution down in the, let's say, more of local state or province levels that it needs to happen. And I know also our team is pushing there to really see that come through the system.
Ann-Sofie Nordh — Head of Investor Relations, ABB
Yes. And there's one question here regarding price. And perhaps so there's no confusion out there. When you talked about price, did you mean that there was price deflation in both China and the U.S.?
Morten Wierod — CEO, ABB
Oh.
Ann-Sofie Nordh — Head of Investor Relations, ABB
It's a total.
Morten Wierod — CEO, ABB
Oh.
Ann-Sofie Nordh — Head of Investor Relations, ABB
So we don't leave no confusion on this.
Morten Wierod — CEO, ABB
Okay. Sorry if I was not clear. What I said is that the slight positive change was an average between some deflationary environment in China and more inflationary or more increase in the United States. So when you add those together, that's where you end up on a slight positive. For the quarter.
Timo Ihamuotila — CFO, ABB
And maybe to add to that, the price on the positive, it's not like just the U.S., of course. It's also in other markets. So China is, as Morten said, a little bit more deflationary at the moment. But in the other markets, we have about this average half a point or something coming from price. And that half a point, of course, includes already the China deflationary. So outside that, higher.
Ann-Sofie Nordh — Head of Investor Relations, ABB
I hope that leaves it without any confusion on pricing. Then we move to the call and then open up the line for Joe at Cowen, please.
Joe Giordano — Analyst, Cowen
Hey guys, good morning.
Ann-Sofie Nordh — Head of Investor Relations, ABB
Morning.
Joe Giordano — Analyst, Cowen
Just curious on the orders on Electrification. Do you feel like just in dollars, are we at some sort of near-term kind of local peak at very high levels at $4.5 billion? And I'm just curious on the mix there too, because margin is very, very good, but in the Q3 guidance, you kind of have stable margins at a fairly high revenue growth rate. So maybe if you could talk about mix there. Thank you.
Morten Wierod — CEO, ABB
Yeah, we have the strong order growth. We see that also continuing. We have a strong pipeline on Electrification. I mentioned already data center, but also utilities is a segment where we see a long term. It's really across the globe where we need to get higher investments in on the utility, on the grid, stronger grid to justify or kind of to enable these Electrification trends that we are seeing all around the world. So that is why we are pretty bullish on what we say about the guidance on Electrification. Margin-wise, it's always a bit of a mix, both when you look at a comparable from last year where Q3 was very strong. And then you have in quarters also some mixed effect when it comes to if we do more system or more base products. So that is kind of in line with Timo.
Maybe you have something else you would like to.
Timo Ihamuotila — CFO, ABB
Yeah, I can throw in something on the dollar comment because this 9% growth, what we have in the orders is on a comparable basis. And then now with weaker U.S. dollar and us being a U.S. dollar reporting company, actually my guesstimate, I don't have it, but I think it's probably 2% this point higher when you compare to this $4.5 billion number. So kind of like probably 11% growth kind of like on reported basis. So again, the 9% is a comparable number. And then exactly as Morten said on the margin, we expect a little bit more from the systems business on the mix. So it really is a mixed topic in EL. And so let's see how it pans out then during the quarter.
Ann-Sofie Nordh — Head of Investor Relations, ABB
Yes, thank you, and then we open up the line for Phil at JPMorgan.
Phil Buller — Analyst, JPMorgan
Yeah, hi, good morning. Thanks for the question.
Ann-Sofie Nordh — Head of Investor Relations, ABB
Good morning.
Phil Buller — Analyst, JPMorgan
I guess the thing that surprised me is how solid the results were outside of data center. Obviously, you don't believe this is pre-buying. I know you referenced market share, but without wanting to label the point, our customers overtly telling you in quite a broad-based fashion that they are now living with uncertainty and pressing ahead with projects. And on that big PA order, I know you can't comment too much about the customer, but is that one that has been in the funnel for a long time and is a tangible example of living with uncertainty and pushing ahead with a large order? Thanks.
Morten Wierod — CEO, ABB
Yeah, thanks, Phil. It's, start at the end. Yes, this is a long-term. There was no surprise. This order. It is, as I say, it's a multi-year order in the service business that will take yeah, 10+ years to execute. So that's why, but you always like to get it on the books, even if it's a long-term commitment from the customer. It shows kind of also the strength to have that on our side that we can work together with the customer on such a big multi-year program and project. When you're talking about the base business or kind of the overall trend there. There is, we said already, there was no kind of pre-buy. There is just a strong confidence of the whole trend of Electrification.
And maybe as you what you said also here, the uncertainty in the market I felt was higher coming into the quarter than leaving it. We as an organization, but I think every industry gets used to the uncertainty these days. And it's more difficult to plan. So in some way, you just say, okay, let's just get on with it and we plan. If it makes long-term sense, a strategic sense to do it, there is no point to wait for a month to see where it all pans out. So I think with the exception, what I've seen, what we saw in automotive, which is a small part of ABB, with the exception of that, I think broad-based people just get more used to that this is a new environment and it's probably going to last for some time.
So let's just get on with it and do what makes sense today because if it makes sense in also over the long term, it doesn't help to wait for another month or two.
Timo Ihamuotila — CFO, ABB
Yeah, maybe just to throw a number in there. So we actually had Q2 also double-digit order growth in large orders outside this $600 million order. So there are people who are also pulling the trigger on other stuff. Yeah.
Phil Buller — Analyst, JPMorgan
Can I just follow up? Are you also taking that same approach when it comes to things like your own CapEx investment plans and M&A plans? Are you a bit more confident now to pursue opportunities than perhaps you were one quarter ago?
Morten Wierod — CEO, ABB
Yeah, I would just say that if it makes long-term sense, we will always go ahead. And there, as we say, some of these longer trends where we know there is capacity needed, we're making the investments. And so we are not delaying or waiting, kind of this wait and see what happens. We're not in that position. We know if it makes long-term sense, we're going ahead. And that's kind of the strategy and the direction.
Timo Ihamuotila — CFO, ABB
Yeah. Of course, slight difference in CapEx and M&A because one you can totally decide yourself. The other one, of course, requires a little bit more consideration from multiple parties.
Ann-Sofie Nordh — Head of Investor Relations, ABB
Okay. Thanks, Phil.
Phil Buller — Analyst, JPMorgan
Thank you very much.
Ann-Sofie Nordh — Head of Investor Relations, ABB
We open up the line for Seb at RBC.
Seb Kuenne — Analyst, RBC
Yeah, thank you for taking my question. I was wondering, the short cycle business within Electrification, and it relates to a question already asked, but you said that demand is still soft, you don't see pre-buying. Pricing is not a big issue. So when I do the numbers, you probably still see like 7, 8, 9% growth just for commercial and any other Electrification. So would then the conclusion be that you take market share in that region? Or what is the reason why it's so strong when PMIs are still unchanged and everyone talks about a flat short cycle and you speak of a strong short cycle here? Maybe you can explain a bit.
Morten Wierod — CEO, ABB
Yeah. No. It's too early to say. I think we are the first in our industry that present our numbers. So it's a bit early to say, yes, we are taking market share. I'm confident in how our teams are working on the ground and supporting our customers. So I base that on our exposure in the market. So I think we are rather gaining, but that's, I'm more based on that on historical data where we have an overview. We are taking share in many important segments for us. So that is part of the success of ABB over the last few years. So that's, however, it's too early to say for this quarter how that will run out. I guess we know that later on.
Timo Ihamuotila — CFO, ABB
Yeah. Yeah, but I would say it's kind of like when you look at the Electrification growth also on revenue, it was kind of like very broad-based. So we had almost 20% growth, I think, in the U.S. and 16% in America and then we had, I think, 7% in Asia, Middle East, and Africa and 8% in Europe. So it is actually quite broad-based kind of like revenue performance there. So it's not coming from just one place.
Ann-Sofie Nordh — Head of Investor Relations, ABB
Thank you, Seb.
Seb Kuenne — Analyst, RBC
Maybe a quick follow-up.
Ann-Sofie Nordh — Head of Investor Relations, ABB
We'll take that later on. Thank you, Seb.
Speaker — Analyst, RBC
Quick follow-up. Okay.
Ann-Sofie Nordh — Head of Investor Relations, ABB
We will open up the line for Alasdair at Bernstein, please.
Alasdair Leslie — Analyst, Bernstein
Yeah, hi. Good morning, everyone. Thank you for squeezing me in. So you called out strong utility demand in Electrification. It sounds like obviously that's been a key driver again in the quarter, I suppose, outside of data centers. I don't think you've expanded on that yet. So I was just wondering if you could talk about the trends there a little bit, perhaps unpack that. Are growth rates accelerating? Are you seeing sort of similar dynamics in the U.S. and Europe? And are there kind of any limiting factors on growth there, either from the customer side or perhaps on the supply side? Just a comment on equipment lead times, maybe not your own, but maybe elsewhere in the industry. Thank you.
Morten Wierod — CEO, ABB
Yeah, as I said, the overall trends in the data center is very positive. So there is a long-term good ramp-up in that business. We see that in North America, which is the biggest part in dollars, clearly, the biggest part of the market, but also the percentage growth is strong also in Europe, but especially also in Asia. So we see the trend overall. It's not pure a North American or a U.S. topic. It's really a global trend. Also in China, when we're looking at our business there. When you talk about what's the limiting factor, I don't think it's ABB will not be a kind of a limiting factor, but there are areas, and we talked about before, power transformers. And also gas turbines for use kind of in critical power. Those are applications that have much longer lead times.
We see there also there are more capacity coming online in the later kind of stages of the, but a couple of years from now, we know in the industry, which may help and not be such a limiting factor. Kind of, but there are a few years ahead that could help that we are able to keep on in even stronger growth than what we see. So that's kind of the, that's the limiting factor, what we see today.
Timo Ihamuotila — CFO, ABB
I think there was also a utility.
Alasdair Leslie — Analyst, Bernstein
That's great. Thank you.
Timo Ihamuotila — CFO, ABB
Utility question.
Alasdair Leslie — Analyst, Bernstein
Yeah, there was a question as well on utilities. Thank you.
Timo Ihamuotila — CFO, ABB
Yeah, so I can comment on that. That also. So on the utility, I think we see a very strong demand environment at the moment, particularly U.S., when they need to sort of strengthen the grid. And there, of course, we have a really good product portfolio, especially for the underground stuff, which is happening and we really expect that this to be a very long-term trend in the U.S., of course, given by increased demand in electricity, as Morten was talking about.
Morten Wierod — CEO, ABB
That's the whole power generation topic again, that we need more electricity, more energy and therefore it will be new investments also, especially in the United States, when you talk about the, on the LNG side.
Timo Ihamuotila — CFO, ABB
Yeah, and maybe throw in there also that in our medium voltage business, because there's been a lot of discussion on kind of like that. Is the industry sort of investing at the right level? We think that we are absolutely investing in the right level. We have the strongest growth in medium voltage in data centers, but that is still kind of like 15% or something also from the medium voltage business. And actually the utility part is 35%. So strong growth in both of those two areas are, of course, extremely important and as we discussed, we really think this is a strong long-term trend.
Ann-Sofie Nordh — Head of Investor Relations, ABB
Okay.
Alasdair Leslie — Analyst, Bernstein
Great. Appreciate the detail. Thank you.
Ann-Sofie Nordh — Head of Investor Relations, ABB
Thanks, Alistair, and then we take the next and potentially last question from George at Barclays, please.
George Featherstone — Director, Barclays
Good morning, everyone. Thank you very much for fitting me in at the end now. Just maybe a bit of a follow-up on some of the topics you've just been discussing there on medium voltage. You said at the start of the year, I guess, gave some quite a helpful color on lead times for your business. I think you said they're around 30 weeks in January. Can you help us with where they are today? And then lots of competitors clearly adding capacity. Are you concerned at all about losing any share in that sort of environment if you're not really doing that yourself?
Morten Wierod — CEO, ABB
Yeah, let me start saying that the lead times, what we talked about earlier, is also where we are today, which means that we are able to deliver more under kind of the same time span with some of our capacity. That's what you see in the revenue, the revenue growth that comes out of it. I don't think I'll comment on much of what is the lead time of competitors. What I want to make sure is that we are in the forefront and that this could be a competitive and use it as a competitive advantage for us. And that's because there, I believe it's an opportunity for us to gain share, not just being shorter, but also to be reliable and that's been the main part, especially on large projects, reliability.
The worst thing contractors want to hear is that the day before delivery that you are a month or two or three late. So this has been one of our parts. We have not been super aggressive of taking orders, but we have been super aggressive when it comes to being reliable and that you can really trust us. Because I believe that long-term, this will be a winning factor in our industry. People will remember the ones who could kind of not let them down or could help you to make a successful project and instead of doing failure. So that we have identified as a very important part and there I also know that we got a very high trust level from customer side, and then you can use that long-term as well.
If you're able to bring customers over, and then of course you need to keep them and that is where this kind of solid project execution on these large deal with short delivery time, but also high reliability is a key winning factor. I've seen from customer meeting that that really builds customer loyalty as well, which is again, in my opinion, into long-term success.
Ann-Sofie Nordh — Head of Investor Relations, ABB
With that.
George Featherstone — Director, Barclays
Thanks, guys. Thank you very much.
Ann-Sofie Nordh — Head of Investor Relations, ABB
Thanks, George. And with that, we wrap up from our end here and say thank you very much. And we encourage you that before you go on your summer breaks, log onto the IR website and register for the Capital Markets Day in November. Wish you a happy summer. Thanks. Bye.
Morten Wierod — CEO, ABB
Thanks. Likewise.