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How do stand up air conditioners work?

From what I understand about air conditioners/refrigeration units (including refrigerators/freezers) is they all exhaust heat someplace. So where do stand up AC exhaust there heat to, or do they not exhaust heat? And if they don't exhaust heat then how do they produce cold air?

Public Comments

1. I think you mean 'free standing' units. We have one at work that exausts the heat through a dryer vent we placed in the wall of the room that it is in. Some models require a water feed but cool themselves by evaporative cooling.
2. the stand up unit just compresses the air it does not make it. so the unit outside of the house will make the compressed air but the actual cooling system in the house will distribute it.