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Chillers: how they work and how they differ

A chiller removes heat from water or another cooling fluid. Pumps carry that fluid to air-handler coils, fan coils or process equipment; the chiller transfers the collected heat to outdoor air, a water circuit or a useful heating load.

Three different ways to describe a chiller

Heat rejection

Air-cooled or water-cooled describes where condenser heat goes—not the compressor inside.

Compression technology

Centrifugal, screw, scroll and reciprocating describe how refrigerant vapor is compressed.

Bearings and lubrication

Magnetic-bearing describes rotor support. Many magnetic-bearing chillers are oil-free centrifugal machines, available in air- or water-cooled configurations.

A water-cooled magnetic-bearing centrifugal chiller combines a water-cooled condenser, centrifugal compression and magnetic shaft support. An air-cooled screw chiller combines outdoor-air heat rejection with screw compression. These labels overlap; they are not mutually exclusive equipment categories.

The vapor-compression cycle

Evaporator

Low-pressure refrigerant absorbs heat from the cooling fluid and evaporates. The chilled-water circuit and refrigerant circuit remain separate across the heat exchanger.

Compressor

Raises refrigerant vapor pressure and temperature so its heat can be rejected at the condenser. This requires energy; the condenser rejects both the collected heat and the compressor's energy input.

Condenser

Refrigerant releases heat and condenses back to liquid. Air-cooled coils use outdoor air; water-cooled condensers transfer heat to a separate water circuit.

Expansion device

Meters refrigerant and reduces its pressure before it returns to the evaporator. The cycle repeats while controls match capacity to the load.

Air-cooled versus water-cooled

Air-cooled chillers

How it works

Fans move outdoor air across condenser coils to reject heat. The chiller still supplies chilled water or another cooling fluid to the building.

Potential benefits

Avoids a cooling tower and its evaporative water use, treatment and condenser-water pumps. Often suits sites with limited water infrastructure or a preference for simpler plant support.

Trade-offs and operating needs

Hot outdoor conditions can increase compressor work and reduce available capacity. Coil cleanliness, fan noise, airflow clearances, weather exposure and freeze protection need attention.

Water-cooled chillers

How it works

Condenser heat transfers to a separate water circuit, commonly connected to a cooling tower. Chilled-water and condenser-water circuits perform different jobs.

Potential benefits

Can use favorable tower-water temperatures and serve large central plants efficiently. Indoor chiller placement can reduce outdoor equipment exposure.

Trade-offs and operating needs

Evaluate the entire plant: tower fans, pumps, water use, treatment, blowdown and water-management responsibilities. Chiller-only efficiency is not a whole-building savings guarantee.

Compressor types and magnetic bearings

Centrifugal

How it works

A rotating impeller accelerates refrigerant vapor; a diffuser converts velocity into pressure. This is dynamic compression rather than trapping a fixed volume.

Potential benefits

Well suited to many large chilled-water plants. Variable-speed and other capacity-control strategies can provide strong part-load performance within the machine's operating envelope.

Trade-offs and operating needs

Load and lift matter: lift reflects the pressure/temperature difference the machine works against. Surge limits, minimum load, staging and condenser-water control require coordinated operation.

Screw

How it works

Rotating screw elements trap refrigerant and reduce its volume. Twin-screw and other screw arrangements differ by design.

Potential benefits

Common in medium-to-large commercial and process applications, with capacity modulation through variable speed, slide valves or other design-specific methods.

Trade-offs and operating needs

Part-load efficiency depends on the unloading method and operating conditions. Many designs require oil management; noise, refrigerant and service requirements vary by model.

Scroll

How it works

Interleaved scroll elements compress refrigerant in progressively smaller pockets. Chillers often use multiple compressors or modules.

Potential benefits

Multiple compressors can stage to match changing demand. Modular arrangements can support phased installation and partial operation during service, where the system is designed for it.

Trade-offs and operating needs

Check minimum system capacity, cycling, control steps and the number of serviceable components. Multiple compressors do not guarantee system redundancy or eliminate shared-component failure risks.

Reciprocating

How it works

Pistons compress refrigerant inside cylinders. These are found in legacy chiller installations and some specialized refrigeration applications.

Potential benefits

Established service practices and cylinder unloading can make continued operation practical for suitable existing equipment.

Trade-offs and operating needs

Moving parts, vibration, noise and maintenance can be important considerations. Compare lifecycle repair and replacement options rather than assume a legacy machine should remain or be replaced.

Magnetic-bearing / oil-free centrifugal

How it works

Controlled magnetic fields support the rotating shaft without conventional bearing contact during normal operation. Oil-free centrifugal designs avoid the usual compressor lubrication circuit.

Potential benefits

Can reduce bearing friction and oil-system maintenance, and support quiet, variable-speed operation with favorable part-load performance under suitable conditions.

Trade-offs and operating needs

This is a bearing/design feature, not a separate heat-rejection category. Power electronics, controls, backup/touchdown bearings, service expertise and the operating envelope still matter. Not every oil-free design uses magnetic bearings.

Other chiller approaches

Absorption chillers

Use a heat-driven refrigerant/absorbent cycle rather than a conventional mechanical compressor. Available steam, hot water, waste heat or direct-fired input may make them useful. They still need heat rejection; water use, footprint, thermal input and specialist maintenance must be evaluated. Low compressor electricity does not mean low total energy use.

Heat-recovery chillers

Capture otherwise rejected heat for useful heating, such as a heating-water loop or indirect domestic water heating. Simultaneous useful heating and cooling demand can improve system utilization; output temperatures and seasonal load balance govern the benefit. Potable water remains separated through appropriate heat exchange.

Free cooling and modular plants

An economizer/free-cooling arrangement can use favorable outdoor conditions to reduce compressor operation, with different air- and water-side designs. Modular describes plant arrangement, not compressor type. Climate, required water temperatures, controls and design redundancy determine the result.

Compare the system, not just the machine

  • Cooling load profile, peak demand, minimum load and required supply-fluid temperatures.
  • Climate, condenser conditions, water availability and water-management capability.
  • Whole-plant energy: chillers, chilled/condenser-water pumps, tower fans and auxiliaries.
  • Footprint, sound, electrical capacity, refrigerant requirements and service access.
  • Staging, design redundancy, controls, commissioning and lifecycle maintenance costs.

No chiller type is best for every building. Actual performance depends on selection, installation, load, controls and maintenance.

Building mechanical systems · Equipment manufacturers

Technical references

High-level technical overview, not equipment selection or installation instructions. Use qualified engineering, locally adopted codes and selected equipment requirements. References reviewed October 22, 2026; no manufacturer affiliation or endorsement is implied.

  • Chilled-Water Systems — technical training

    Refrigeration cycle, heat rejection and whole-plant comparisons

  • DOE laboratory HVAC resource map: chillers

    Centrifugal and positive-displacement compressor mechanisms

  • ASHRAE-hosted seminar: centrifugal fundamentals

    Dynamic compression; explanatory material, not a standard

  • ASHRAE-hosted seminar: magnetic bearings

    Rotor support, lubrication, sound and vibration; explanatory material, not a standard

  • DOE: absorption chillers for CHP

    Heat-driven refrigeration and thermal inputs

  • Hydronic Heat Recovery Control — engineering newsletter

    Useful condenser heat, simultaneous loads and controls

  • DOE: purchasing energy-efficient electric chillers

    Relevant full- and part-load performance comparisons

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