Differences between Air and Water Cooled Chillers

25 Aug.,2025

 

Differences between Air and Water Cooled Chillers

Chillers generate chilled water which is used to provide air conditioning in buildings. All building generate a lot of unwanted heat, common sources being solar heat gain from glazing or occupants, lighting and equipment. A Chiller is a heat transfer device that uses a refrigeration cycle to transfer heat between two fluids. There are two main kinds of chillers commonly used in building services:

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Air-cooled chillers are equipped with condensers that utilize ambient air to reduce refrigerant temperatures. Fans are used to force the air over tubing containing refrigerant and therefore remove heat from it. The cycle then removes heat from a water loop which is distributed through a building providing cooling where it is needed. The entire chiller is located outside so that heat can be rejection to atmosphere.

Water-cooled chillers take advantage of the high heat capacity of water to facilitate refrigerant chilling. There are two water loops used, one for distributing cooling around the building and one to transfer waste heat to the atmosphere via a cooling tower. Pumping is required for both the primary and condenser water loops and the only piece of equipment that is external is the cooling tower.

Key considerations:

The Pros and Cons of Chilled Water Air Conditioning Systems

What is a Chilled Water Air Conditioning System?

Chilled Water Air Conditioning Systems cool the house by transferring cold water through the pipes and heat exchangers. The key difference between the AC and the chiller water AC is that it uses water as a refrigerant. As a result, it becomes suitable for industrial and commercial use.

Water Cooled Chillers vs. Traditional AC Systems

Traditional cooling units are typically used for residential settings. On the flip side, the chilled water-cooling units are used in the commercial spaces.

While traditional cooling units use refrigerant to cool the air, water-cooled air conditioning systems use cold water to cool the house.

Advantages and Disadvantages of Air-Cooled AC

Advantages of Air-Cooled Chiller

  • Ease of Installation

Compared to water-cooled units, air-cooled chillers are not difficult to install. For this, you wouldn’t be required to install the piping systems or cooling tower. This way, you can reduce the overall setup time.

  • Low Maintenance

As it doesn’t require any cooling towers and condenser pipes, it automatically becomes easier for homeowners to maintain this air-cooled chiller.   

  • Flexible Placement

You can install the air-cooled chillers on your building’s rooftop. This way, it won’t be an issue if you have limited space.

Disadvantages of Air-Cooled Chiller

  • Higher Energy Costs

Unlike the water-cooled chillers, air-cooled chillers use more electricity. As a result, energy costs increase drastically.

  • Low Efficiency in Extreme Heat

When the weather conditions are extreme, its efficiency reduces drastically.

  • Noise Issue

As air-cooled chillers have compressors and fans, it is noisy and can impact your sleep.

Should You Consider Installing Water-Cooled Chillers? — Pros & Cons

Advantages of Water-Cooled Chiller

  • High Efficiency

Compared to the air-cooled AC, water-cooled chillers are way more energy-efficient. It is possible because it transfers the heat very effectively. Thus, lowering the overall energy consumption.

  • Long Lifespan

As it has a robust design and efficient heat transfer capabilities, homeowners can expect a longer operational lifespan.

  • Quiet Operation

If you’re looking for an air cooler for hospitals or schools, water-cooled chillers can be the go-to option for you.  

Disadvantages of Water-Cooled Chiller

  • Significant Initial Investment

As it needs condenser water pumps and a cooling tower, the initial investment is very high.

  • Water Dependency

To run the water-cooled chillers, you must have a consistent water supply. This is why, you must install in an area where there is no water shortage or restrictions.

Air-Cooled Chillers vs. Water-Cooled Chiller Systems

  • Installation and Maintenance

If you prefer cooling units that are easier to install and maintain, you should go for the air-cooled chillers. It doesn’t require extra equipment, such as a cooling tower, which makes it easier to handle for small facilities or businesses.

On the flip side, water-cooled chillers require regular maintenance. Moreover, it has a rigorous setup process, which eventually increases the installation cost. However, compared to air-cooled chillers, water-cooled chillers save more money in the long term.

  • Energy Efficiency

As water-cooled chillers can transfer heat more efficiently and have an efficient operating process, they use less energy than air-cooled chillers.

This feature makes it suitable for versatile applications and can function in different temperatures.

  • Operational Lifespan

Compared to air-cooled chillers, the water-cooled HVAC units have a longer lifespan. So, if you’re looking for an investment that will pay you in the long term, go for the water-cooled chillers.

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  • Environmental Impact

Water-cooled HVAC units have a quiet operation. Besides, it is more energy-efficient compared to the air-cooled chillers. However, as it is dependent on water, it is not suitable for drought-sicken areas.

On the flip side, air-cooled HVAC systems are less energy-efficient in extreme conditions. Moreover, it generates noise while it operates.

Benefits of Chilled Water Air Conditioning Systems

  • Energy Efficiency

Compared to air-cooled chillers, water-cooled ACs use less energy, leading to significant savings on utility costs. If you’re looking for an energy-efficient solution for your industrial facility or large office space, consider installing water-cooled chillers. This will help you reduce substantial costs over time.

  • Quiet Operation

Where noise pollution can be a concern, water-cooled chillers can be a great fit. As there are no fans and it has reduced mechanical noise, its operation is quieter, making it perfect for hospitals, office buildings, and schools.

  • Space-Saving Design

Unlike other air conditioning systems, water-cooled chillers require minimum space, making them suitable for businesses that have limited outdoor space. Again, if it is compared to the air-cooled chillers, water-cooled chillers would still win because air-cooled chillers require access to fresh air and additional space.

  • Ensured Safety

Traditional air conditioning systems use toxic chemicals as refrigerants. But the water-cooled chiller uses water in place of harmful chemicals. This makes it suitable for spaces like schools and hospitals where safety is the top priority.

Drawbacks of Chilled Water Air Conditioning Systems

  • Higher Initial Investment

Since the installation of additional parts, such as cooling towers and condensers, is involved, the initial cost of water-cooled chillers is high. However, the long-term saving from energy efficiency and longer HVAC lifespan eliminates this drawback of huge initial investment.

  • Complicated Installation

The process of installing a water-cooled chiller includes setting up the cooling towers, extensive piping systems, and condenser water pumps. All these require specialized labor and skills, and this can increase the setup charges.

Compatibility and Applications

  • Large Commercial or Industrial Facilities

For precise temperature control and consistent cooling, the chilled water system has no competition.

Chilled water systems can fulfill the high cooling demands, making them suitable for large spaces like industry and commercial facilities. Also, they are well-known for their accurate temperature control. All these make them the perfect candidate for usage in data centers and large office spaces.

  • Environmental Factors

You should consider installing the water-cooled AC where there is sufficient water. Otherwise, consider installing an air-cooled chiller.

As the water-cooled chillers have a high-water usage, it is not suitable for areas with water shortages. This is why drought-sicken areas can be a huge drawback. On the flip side, air-cooled chillers don’t have that limitation.

Factors to Consider

Before zeroing in on what to install, as a business, you’ll have to factor in the following factors-

  • Initial investment
  • Maintenance requirements
  • Operational costs
  • Environmental impact

You can consult an HVAC professional if you don’t have much time for HVAC research. They will help you make an informed decision that meets all your needs and is within your budget.

Other Considerations

  • Water Temperature and Treatment

You’ll have to ensure that the water temperature is maintained. Also, you’ll have to conduct proper water treatments regularly. This way, you’ll be able to prevent the buildup of contaminant particles. This will eventually lead to efficient cooling operation and high functionality.

  • Safety of Water-Cooled Chillers

If you’re considering installing water-cooled chillers in sensitive environments such as hospitals and pharmaceuticals, you’ll have to give more emphasis on the safety considerations. This includes not using toxic chemicals and ensuring proper wiring.

  • Mechanical Room Requirements

Whether or not you’re installing an air-cooled chiller or water-cooled chiller, you must have a dedicated mechanical room to house the equipment. You’ll have to design this mechanical room in a way that can accommodate the HVAC system dimensions.

  • Specific Applications

The choice of chiller can vary depending on the application or usage. For example, dairy firms cannot use the same chiller that is being used in a medical facility where consistent temperature is a must.

While choosing the chiller based on usage, you’ll have to factor in the reliability and efficiency of the cooling system. 

  • Cost Considerations

As I mentioned earlier, water-cooled chillers require a greater investment. On the flip side, air-cooled chillers have a higher energy cost. Before installing any of the air conditioning units, you must balance these costs and install the one that suits your budget and meets your requirements.

Conclusion

While selecting the right chilled water AC unit, you must consider the budget, size, and your specific needs. If you’re looking for a cooling unit that offers long-term efficiency and has a quiet operation, you can go with the water-cooled chillers. However, you must remember that it requires complex maintenance and more significant investments.

On the flip side, air-cooled chillers are easy to maintain, and the installation process is easier than that of water-cooled chillers. However, the downside of this unit is that it may not be efficient in extreme conditions.

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