On the outside, the refrigerant is compressed, which will condense it to a liquid under high pressure, and also cause the fluid to release energy as heat. There will also be a large heatsink/fan so this now hot fluid can cool down a bit (discharging best to the surroundings)
On the inside, that high pressure fluid is allowed to expand, which will cause it to absorb heat from the surroundings. A heatsink/fan here will cool down air as it passes over it. The now low pressure refrigerant is piped back outside and the cycle repeats.
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