A cooling tower works by evaporating a portion of circulating water to reject process heat into the atmosphere. It has components like fill media, drift eliminators, nozzles, and fans. Key performance parameters include range, approach, effectiveness, cooling capacity, and cycles of concentration. Cooling tower performance depends on factors like heat load, flow rate, wet bulb temperature, and approach. Proper sizing considers these factors and energy efficiency can be improved through control strategies and opportunities like optimized fan operation.