A compressor system includes a compressor unit having a first rotor and a permanent magnet motor unit having a second rotor connected to the first rotor. The first and second rotors are rotatably supported on at least first, second and third bearings, and the compressor system further includes a housing having a first chamber in which the motor unit is located, a second chamber in which the compressor unit is located and a third chamber in which at least the first bearing is located. The first and third chambers are fluidly sealed from the second chamber and contain a cooling, lubricating and barrier liquid within which the motor unit and the first bearing are submerged, and during operation of the compressor system the fluid is circulated between the first and third chambers.