The present invention is directed to a power transformer and VSD mounted on the chiller equipment. The transformer is preferably a liquid-filled transformer rated for medium/high voltage input, and at least two output low voltages, one voltage for the VSD and other power equipment, and another voltage for the control panel and control equipment. The placement of the power transformer on the chiller eliminates the need to allocate additional floor space for an auxiliary transformer or medium/high voltage VSD. The transformer also includes cooling means in the form of a heat exchanger in which the liquid is cooled by circulating condenser water, chilled water or refrigerant from the chiller system. The cooling means may also be connected to cooling coils connected to the VSD. The size of the power transformer is significantly reduced by the use of the chiller system to remove heat from the transformer while in operation, thereby maintaining the ambient temperature rise of the transformer within its rated operating temperature range. The transformer and VSD heat is discharged to the outside ambient eliminating additional cooling requirements for the equipment room.