T C said:
While Russ's statement is true, I don't think it really explains this very well. This really comes from 3 factors. First of all, you have to understand what a nozzle and diffuser do. A nozzle exchanges pressure for velocity, a diffuser does the opposite. So, at the entry of a nozzle, the pressure will be high and velocity low, while at the exit, the pressure will be lower and the velocity higher. On a diffuser, the entry will be at relatively high velocity and low pressure, and then as it slows the flow down, the pressure increases such that the exit conditions are a higher pressure and lower velocity.
The second important fact is that at any point where a wind tunnel is open to the atmosphere, the pressure must be equal to ambient pressure. This is because it is open to the atmosphere (admittedly, there are some minor caveats here, but we can largely ignore them for the moment).
Third, as was already discussed previously, fans flow more air (volumetrically) when the pressure change across the fan disk is as small as possible.
Now, taking those three things, let's think about a wind tunnel with only a nozzle. As I already said, the entrance of a nozzle must have a higher pressure than the exit. However, if the exit is open to the atmosphere after the test section, this means that the pressure just after the fan (just before the nozzle) must be higher than ambient, in order to drive the flow through the nozzle. This means you have to have a significant pressure gradient across the fan, reducing its flow. Having the fan on the exit doesn't help you that much either, since now the exact same logic still applies, except that the pressure just before the fan must be below ambient (since the entry to the nozzle is at ambient), again requiring a significant pressure jump across the fan.
However, now imagine a system with a nozzle and a diffuser. The air enters the nozzle, then loses pressure as it gains velocity. It then traverses the test section, and then in the diffuser, it loses velocity and the pressure rises again, and it is then exhausted to ambient. This means that the exit of the nozzle now doesn't have to be at ambient pressure - it can be below ambient pressure, since the flow will gain pressure in the diffuser. If we're still imagining a setup with a fan on the front, and you have the same pressure ratio across the nozzle, this means that less pressure is needed at the entrance to the nozzle than would be needed without the diffuser, since now the nozzle exit is actually below ambient pressure. Because of this, the pressure ratio across the fan can be much smaller, allowing it to flow more air (or, alternatively, to flow the same amount of air with less power).
This also still applies with an exhaust fan setup - basically, allowing the test section to operate below ambient pressure allows for a much smaller pressure change across the fan disk, improving operation substantially.