how ac actually works Cooling Heating Air conditioning in a two-storey home Side view of a house with an indoor unit and wall control in a bedroom and a living room. Refrigerant pipes run through the wall and down the outside to an outdoor unit on a wall bracket. First floor: bedroom Ground floor: living room Outside 2 Refrigerant pipework Cooler, drier air Cooler, drier air Warm air Warm air 1 Indoor unit 4 Wall control Heat released outside Heat collected from outside air 3 External condenser 1 Indoor unit 2 Refrigerant 3 External condenser 4 Wall control Play the loop