Centrifugal compressors work by imparting kinetic energy to a gas stream using an impeller, converting the dynamic energy into increased static pressure. They have advantages like high throughput capacity and efficiency over a wide operating range, but also disadvantages like discharge pressure limitations. Key components include impellers, diffusers, volutes, casings, shafts, bearings, and seals. Surge, a dangerous condition where flow reverses rapidly, must be controlled. Compressors can operate alone or in multi-stage arrangements with intercoolers. Common drivers are steam turbines, electric motors, and gas turbines.