Air compressors need plenty of air flowing around the compressor in order to avoid any complications.
For a reciprocating compressor, you should locate the compressor at least 12 inches (30 cm) from walls and other equipment.
For rotary screw compressor, you should locate the compressor at least 3 ft from the walls and other equipment.
Unless the electrical components of the compressor are specially protected for outdoor use, do not install an electric motor compressor outdoors or in an area that will expose the electrical components to rain, snow or sources of appreciable moisture.
For more information regarding your reciprocating air compressor, view the quick installation manual listed under "Documents".