Air-cooled chillers absorb heat from process water and transferred to the ambient air. They are mostly used in applications where the heat discharged is not a factor. They don't need a cooling tower and condense water pump. The maintenance of air cooled chillers are less than water cooled units.

Air-cooled chillers are intended for outdoor installation and operation. Air-cooled machines are directly cooled by ambient air being mechanically circulated directly through the machine's condenser coil to expel heat to the atmosphere.