Either location can work. However, the machine will generally produce more water outdoors because it has access to the full ambient air supply and humidity.
When the unit is indoors, it may compete with air conditioning systems, which remove moisture from the air as they cool the space. Since atmospheric water generators rely on humidity in the air to produce water, lower indoor humidity can reduce production.
If you choose to place the machine inside, try to position it in a well-ventilated area where fresh air can circulate. Outdoors, placing the unit in a covered or protected location can help protect it from weather while still allowing it to access humid air for optimal performance.
