Energy costs typically dominate the life-cycle costs of centrifugal compressors used in various industrial and municipal processes, making the compressor an attractive target for energy efficiency improvements. This study considers the achievable energy savings of using three different diffuser types in a centrifugal compressor supporting a typical end-use process in a waste water treatment plant. The effect of the energy efficiency improvements on the annual energy use and the environmental impacts are demonstrated with energy calculations and life-cycle assessment considering the selected compressor task in the waste water aeration. Besides the achievable energy saving benefits in the wastewater aeration process, the presented study shows the influence of the additional material needed in the diffuser manufacturing on the total greenhouse gas emissions of the compressor life-cycle. According to the calculations and assessment results, the studied diffuser types have a significant effect on the compressor energy use and environmental impacts when the compressor is operated in the aeration task. The achievable annual energy savings in this case were 2.5–4.9% in comparison with the baseline scenario. Also, the influence of the additional material and energy use for manufacturing the diffuser are insignificant compared with the avoided greenhouse gas reduction potential.