^^This. In my last shop I built a smaller 4'x4' insulated closet where I put the air compressor. It drew fresh air in from the shop via a vent and the main rigid line exited the closet then branched off to the other runs of tubing. It did a "fair" job of keeping the noise controlled but was still quite evident. Much better than a friend's shop who had his just in the open in his shop.
In my new shop, the air compressor is located in the adjacent RV/storage bay and is barely audible when running. Much, much better location but not sure if your shop is divided by such a wall.
Another option is to have it in an enclosed area on the outside or exterior of the shop and plumbed into the workspace. However, that may make it more noticeable and noisy outside which may not be tolerated.