I built a couple of short walls, connected by a 45 degree wall in the corner near the overhead door.
I have 13,5’ ceilings in that garage, so I cheated a little on the compressor room height so I could have a second story for storage.
I think I insulated the walls with regular R13.
I got a cheap, outward opening 36” door from Menards on clearance and mounted it on the 45 degree wall.
Leave as much of a gap under the door as you can for air circulation.
My 5hp, 60 gallon throws out a lot of heat when used heavily, but an inch and a half gap over a 36” opening seems adequate.
You will need an electrical disconnect at the compressor, as it will no longer be in the same room as your panel.
Mounting the compressor in the corner (5 sided room) with the angled door wall doesn’t loose much useable space.
I prefer this solution to an outside access only room, as, if you locate the regulator and ball valve in the room, you have to at least look at the compressor to give it “the eyeball” every time you fire it up.