Performance of time delay estimation (TDE) algorithm directly affects effect of electromechanical equipment fault sound source positioning based on TDE. Designing more accurate algorithm based proper models of background noise and fault sound can improve accuracy of localization. Firstly, this paper analyzes the characteristics of noise and fault sound of external central air conditioners, then, models environmental noise using Alpha distribution. Finally, Analyzes measured data and preprocess them, realize the more appropriate modeling of environmental noise and eliminate operating noise sources interference. This study has a guiding significance in large-scale mechanical and electrical equipment failure sound source signal modeling, and is helpful to research on TDE algorithm.