You will want to place your water heater next to an outer wall to make room for the flue.
Can i put my water heater outside.
Many are installed inside a living space and tucked away in a closet.
You can also wrap your hot water heater in insulation as well as your pipes for good measure.
If you re venting straight up make sure to keep out the rain objects animals etc.
Avoid installing it in locations that may subject it to freezing.
This is to protect it from splashed water rain insects direct sunlight and debris.
Flexible hoses connecting the rest of the plumbing should resolve any movement concerns.
For me i put gas water heaters outside and electric water heaters inside.
A tankless water heater is for indoor installation only.
Check with a professional for installation if you re not comfortable.
Space surrounding the unit is almost irrelevant give yourself enough room to maneuver the sucker or work on it you should be fine.
This is why most hot water heaters are in garages or basements.
A modest amount of insulation is a plus.
Water heaters are often located outside the home in garages for example.
The lowes home depot even sell metal water heater sheds they are three sided to be placed against the house.
The location of a water heater is always a concern.
Not sure about electrical but i doubt it would be wise to put outside.
Alternatively you can also keep your hot water heater in a shed as long as it s properly ventilated and meets the minimum clearance requirements for distance to combustible material.
Often a water heater in a pan or not is out of mind until someone notices water in the hallway damp drywall or a buckling floor outside the water heater closet.