A refrigeration system includes a free cooling system having an air-cooled heat exchanger, where the air-cooled heat exchanger includes a fan configured to move air over coils of the air-cooled heat exchanger to remove heat from a coolant flowing through the air-cooled heat exchanger, and a mechanical cooling system with a refrigerant loop that includes an evaporator, a compressor, and a condenser disposed along the refrigerant loop, where the compressor is configured to circulate a refrigerant through the refrigerant loop, and wherein the evaporator is configured to receive the coolant and transfer heat from the coolant to the refrigerant. The refrigeration system also includes a controller configured to adjust a fan speed of the fan up to a threshold fan speed, to initiate operation of the compressor when the fan speed reaches the threshold fan speed, wherein the fan speed and a compressor speed of the compressor are based at least on an ambient air temperature and a cooling load demand.