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.
Drain your tank manually every day. I do not trust the automatic drain valves.