Let's visit this whole compressor location one more time....the reason compressors are outside is the need to be cool, cold is ok too, if kept warm they breed water, water in airlines and air tools is bad. The air should be either dropped in temp, or kept cool before use, or add a refrigerated air dryer.
Oh and the noise isn't pleasant inside, some will place an insulated enclosure to fend off the noise.......oops, then you've got water shooting out the air hoses and tools.
Before some of you disagree I'll say, some parts of the country are dry enough to get away with it inside, and some use so little volume they never see any water, but most won't be so lucky.
The other benefit it the added floor space, ��