How does water-cooled economization work in data center cooling systems?

In water-cooled systems, economization is achieved by cooling the water and then using the cool water in place of chilled water that would normally be supplied by the chillers. This is done by using a heat exchanger to transfer heat from the water to the outdoor air. When the outdoor air is cool enough, the water can be cooled sufficiently to be used for data center cooling, reducing the need for mechanical cooling and subsequently reducing energy consumption.