I have a small attached garage, 20x22 ft. Since space is at a premium, and because I didn't want to hear it run, I put my 60 gallon compressor in the boiler room in my basement, which is on the completely opposite side of the house from the garage. I ran 3/4" copper pipe right through my finished basement, parallel to the 3/4" conduit I ran to power the compressor. The pipe branches out when it gets to the garage and I have a service drop on the back wall, and another to a hose reel right next to the door.
Wherever you decide to install it, i suggest you do NOT shove it into a corner, or build a tiny shed for it. Be sure to leave enough space around it so you can actually service it if you need to. That's the most common mistake I see people make with their installations.