No, they don't. Those that need air entry underneath come with short legs fitted.
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Absolutely NOTYES, these exist. They are called ventless gas water heaters.
Gas tankless water heaters use high-powered burners that quickly heat water as it runs through a heat exchanger. It is 22 percent more energy efficient on average than the gas-fired storage-tank models.
They are made all over the world. Those sold in the U.S. for the most part are made in the U.S. or Mexico.
In most homes water is made hot by an electric or gas water heater. The electic element or gas flame comes on and heats the water to the required temperature , usually around 135 f in most heaters. The heater then shuts off until it's activated again by a thermostat indicating that the water temperature has dropped.
Water heaters should be turned off, with the gas or electric to them turned off as well, when replacing any hot water lines. This would also be a good time to drain the tank and remove any built up water scale. This makes your heater more efficient.