Water is a normal byproduct of a properly working air conditioner. Water accumulates in the appliance because the air conditioner pulls moisture from the air during operation. This moisture accumulates in the bottom of the unit on a pan directly below the air conditioner's primary fan. The appliance's fan may have a rim attached to its blades designed to scoop excess water from the pan and literally fling it against the condensing coils. Because the coils run hot while in operation, water touching them quickly evaporates. Alternatively, the air conditioner's pan may have a drainage hole to allow excess moisture to leave the unit.
An air conditioner with a full water pan may make sloshing or other moving water noises while the fan is throwing excess moisture against the appliance's condenser coils. This noise is completely normal and not indicative of a malfunctioning appliance. Avoid drilling into the bottom of the air conditioner's pan to provide a place for the water to drain. The air conditioner already has a means of disposing of excess water in the pan. Drilling a hole in the unit places the internal components at risk for damage from an ill-placed drill bit.
Excess moisture can still damage an air conditioner's electrical components if a clog develops in the drainage pan or the fan fails to adequately remove excess moisture. Water contacting electrical components can cause the appliance to stop running. This damage may require replacing the affected components or purchasing an entirely new air conditioner. Check the appliance's drainage system routinely to ensure no clog develops. Additionally, a unit giving off cold air with a high water vapor content may be in danger of internal damage from excess water.
Bacteria thrive in wet, warm and dark places. An air conditioner with a clogged drainage system can create the ideal environment for bacterial or mold growth, especially when the unit is not in operation. Left unchecked, the air conditioner can spew harmful bacteria into a given room. Symptoms from exposure to bacteria can vary in severity by the type of growth occurring in the appliance from breathing difficulties and headache to death. Legionella -- bacteria responsible for the deadly lung ailment, Legionnaire's Disease -- can thrive in parts of an air conditioning system.