A chiller system includes a switched reluctance motor for powering the compressor of the chiller system. A variable speed drive with a boost converter provides a boosted voltage to the switched reluctance motor. The switched reluctance motor and the compressor may be disposed within the same hermetic enclosure and driven by a common drive shaft. Cooling for both the variable speed drive and the switched reluctance motor is provided from condenser water in the condenser water circuit, or from an intermediate liquid cooled by water from the condenser circuit to increase system efficiency. Windage losses are reduced by barriers introduced within the motor, and by maintaining a reduced pressure in the switched reluctance motor.