Why is your air conditioning sweating in your home?

It is "sweating" because of the water coolants inside the generator.

Warmer air is sucked from the outside, then its heat is flown through the water-cooled tubes inside the conditioner. As the heat goes through and cools into cold air, it melts some of the "ice" that is formed around the small water pipes, which causes the "sweating".

It is much like car air conditioning.

A/C works by the inside Air flowing across the Evaporator. The Evaporator has Refrigerant (Freon) flowing through it, as the air passes over it the air cools and looses the moisture or humidity and that is where the water comes from. The refrigerant absorbs the heat and goes through the condenser where it is cooled again. If the Evaporator freezes up then the a/c will malfunction since the air cannot pass through it.