Sugarmaple, Good comments. I intend to put my vertical compressor on the other side of a wall from the shop. Hadn't really thought about containment for a potential tank failure.
A sheet of fairly thin sheet metal(not too thin, at least 20 ga but 18 is better) laminated between the sheetrock and a piece of OSB or ply will stop some very energetic debris. I will put it on the "other" side of the wall, not in the shop.
You should fasten the laminations to the studs in the wall. You don't have to do a large area. I intend to do a 4x8 which will cover the "angles of interest." Any debris thrown in other directions will not be likely to encounter people, just things, insured things.
Pat