It is generally recommended that the outdoor AC unit be in the shade. This helps to improve efficiency and prevent the unit from overheating. If the unit is in direct sunlight, it will have to work harder to cool the space, which can lead to higher energy costs and decreased lifespan of the unit. Additionally, units that are in shaded areas are less likely to overheat and shut down, which can be a major inconvenience. Therefore, it is generally best to place the outdoor AC unit in a shaded area whenever possible.