A turbocharger (62) comprises a center housing (64) interposed between a compressor housing (68) and a turbine housing (66) . A shaft (70) is disposed within the center housing (64) and has a turbine wheel (74) attached at one end and a compressor impeller (76) attached at an opposite end. The center housing (64) includes an internal liquid cooling passage (86) disposed therein that includes a compressor section (90) and a turbine section (88) . The compressor section (90) is positioned adjacent a center housing wall section (100) connected to the compressor housing (68) , and the turbine section (88) is positioned adjacent a center housing wall section (94) connected to the turbine housing (66) . The turbine and/or compressor housings include one or more variable geometry members disposed therein. The liquid- cooled center housing (64) maintains the compressor housing (68) wall structure below about 1800C during turbocharger operation to minimize or eliminate the unwanted occurrence of oil deposits thereon that can impair variable geometry member movement and reduce compressor efficiency.