Where to put the air compressor?

So I’m in the process of building a shop and am debating on where I should put my 80 gallon Kobalt vertical compressor. The two options I’m considering are…

1. build a small room off the back of the shop (which would require spending a little more for the concrete, lumber and metal needed) or
2. put it up in the loft/mezzanine, then maybe add a closet around it if needed for noise.

Either way, I plan to either add and automatic drain valve, or plumb an air cooler and water trap in between the pump and tank.

If I had my time back, I would have put mine outside. Easy to do now and, added benefits of not having to listen to the noise drowning out music, conversations, phone calls.

If you put it overhead, remember vibrations will knock dust down every time it kicks in. Dont plan on painting if its overhead.