The air is hot because it’s moving around a bunch.

The air gets fanned over some coils filled with coolant.

The coolant gets heated and starts moving around a bunch causing it to move through the coil through some insulation foam to the outside half.

Once it nears the end of the loop it has to go through the compressor.

The compressor squishes the moving coolant and now it can’t move around as much, all the heat gets dissipated into the surrounding outside air.

The compressor lets the cooled coolant go back through to the inside.

Process Repeats with diminishing returns.

Wizard_Fucking_Magic