Water-cooled HVAC systems are generally more efficient than air-cooled alternatives, particularly in regions with high ambient temperatures and humidity levels. This is because water-cooled systems can dissipate heat more effectively, resulting in lower energy consumption and operating costs. Additionally, water-cooled systems tend to have higher coefficients of performance (COPs) and can operate at higher efficiencies even during peak summer months. However, the specific efficiency advantages of water-cooled systems depend on various factors, including system design, climate, and operating conditions.