A sealed induction motor for a chiller assembly is provided. The induction motor includes a stator, a rotor, and a shaft with a first end and a second end. The rotor and the shaft are configured to rotate relative to the stator. The induction motor further includes a first magnetic bearing assembly located proximate the first end of the shaft and a second magnetic bearing assembly located proximate the second end of the shaft. The first and the second magnetic bearing assemblies are configured to support the shaft. The shaft is coupled to a centrifugal compressor using a direct drive connection.