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What Are the Differences Between Air-Cooled Chillers and Water-Cooled Chillers?

Nov 10,2025
What Are the Differences Between Air-Cooled Chillers and Water-Cooled Chillers?
Chillers play a vital role in commercial, industrial, and HVAC applications, removing heat from buildings or processes. While air-cooled and water-cooled chillers serve similar purposes, they differ in their operating methods and applicable environments.
Understanding these differences helps facility managers, engineers, and project owners select the appropriate system to meet their needs in terms of cooling performance, energy efficiency, and long-term operating costs.
1. Cooling Method
Air-Cooled Chillers
Air-cooled chillers utilize ambient air to remove heat from the refrigerant.
   ●  The heat is dissipated through the condenser coils.
   ●  A fan blows outdoor air into the coils for cooling.
   ●  No cooling tower is required.
Water-Cooled Chillers
Water-cooled chillers use water and cooling towers to dissipate heat.
   ●  The water in the cooling tower absorbs heat from the condenser.
   ●  The water is continuously circulated for cooling.
   ●  Additional auxiliary facilities are required, such as water pumps and piping.
2. Installation Requirements
Air-Cooled Chillers
   ●  Outdoor installation (roof, ground, or open area).
   ●  Easy installation.
   ●  No machine room or cooling tower required.
Water-Cooled Chillers
   ●  Indoor installation, requires a dedicated machine room.
   ●  Cooling tower requires a roof or outdoor space.
   ●  More complex piping and water system components.
3. Energy Efficiency
Air-Cooled Chillers
   ●  Compared to water-cooled units, it has lower energy efficiency.

   ●  The higher the outdoor temperature, the lower the efficiency.
Water-Cooled Chillers
   ●  Due to its stable water temperature, it is extremely efficient.
   ●  It is ideal for large-scale cooling loads and continuous operation.
   ●  Although the initial investment is higher, the long-term operating costs are lower.
4. Maintenance Requirements
Air-Cooled Chillers
    ●   Easier maintenance.
    ●   No water treatment required.
    ●   Outdoor installation makes components more susceptible to weather, dust, and debris.
Water-Cooled Chillers
   ●  Require regular water treatment to prevent scaling, corrosion, and biofouling.
   ●  Cooling towers require more frequent inspection and cleaning.
   ●  Indoor installation protects equipment from outdoor wear and tear.
5. System Lifespan
Air-Cooled Chillers
   ●  Due to prolonged exposure to outdoor environments and high operating pressures, their service life is relatively short.
Water-Cooled Chillers
   ●  Have a much longer service life, typically exceeding 20-30 years with proper maintenance.
   ●  They experience less environmental exposure and offer higher reliability.
6. Initial Cost vs. Operating Cost
Air-Cooled Chillers
   ●  Lower initial cost.
   ●  Higher energy consumption, resulting in higher operating costs.
Water-Cooled Chillers
   ●  Higher initial cost due to the need for cooling towers, water pumps, and water supply systems.
   ●  Lower operating costs; larger units offer higher long-term returns.
7. Best Application Scenarios
Air-Cooled Chillers
⭐ Air-cooled chillers are suitable for:
  ●  Small to medium-sized commercial buildings
  ●  Water-scarce areas
  ●  Projects with limited installation space
  ●  Medium cooling loads
  ●  Customers seeking lower initial investment
Water-Cooled Chillers
⭐ Water-cooled chillers are suitable for:
  ●  Large commercial complexes
  ●  Industrial plants
  ●  Data centers
  ●  Hospitals and laboratories
  ●  Buildings requiring high cooling capacity and efficiency
  ●  Areas with abundant water supply
Air-Cooled vs. Water-Cooled Chillers: Quick Comparison Table
Feature
Air-Cooled Chiller
Water-Cooled Chiller
Cooling Method
Air
Water + Cooling Tower
Efficiency
Medium
High
Installation
Simple, outdoor
Complex, indoor + tower
Maintenance
Low–medium
Medium–high
Lifespan
Shorter
Longer
Initial Cost
Lower
Higher
Operating Cost
Higher
Lower
Best For
Small/medium buildings
Large & industrial projects
Which One Should You Choose?
The optimal choice depends on your project size, climate conditions, water supply, budget, and energy efficiency targets.
If you want to reduce upfront costs and simplify installation → choose an air-cooled chiller.
If you require high cooling capacity, long-term high efficiency, and high performance → choose a water-cooled chiller.
At Aurashu, we offer customized chiller system designs to meet your building's cooling load, energy targets, and application needs.