Chilled water systems work much the same way as direct expansion systems work. The exception is they use water in the coil rather than refrigerant.
Major Components for Water Cooled Chilled Water System:
Chillers have become an essential HVAC component of a wide variety of commercial facilities, including hotels, restaurants, hospitals, sporting arenas, industrial and manufacturing plants, etc. The industry has long recognized that chiller systems represent the single largest consumer of electrical usage in most facilities. They can easily consume more than 50% of the total electrical usage during seasonal periods.
Water-cooled chillers feature a water-cooled condenser connected with a cooling tower. Water-cooled chillers typically reside indoors in an environment protected from the elements. Hence, water-cooled chiller can offer a longer lifespan. Water-cooled chillers typically represent the only option for larger installations. The additional cooling tower system will require additional installation expense and maintenance as compared to air-cooled chillers.
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Typical Chiller Plant Room: