I can see that happening.This is probably going to be an NYC question, and not an NEC question.
Are any other utility rooms allowed to house these panels (and ATS's)?
for example, there is a fuel oil room adjacent to the elec room, which would be very convenient.
Closest thing to what most people are inquiring about when they say electrical room is what is covered in 110.26, but that section does not dedicate an entire room to electrical equipment just space about the electrical equipment in any location.
Fuel oil (such as K1, K2 kerosene) doesn't have low enough flash point to create hazardous location.Are these NEC 700/701/702 ATSs? Is this Level 1 or 2 according to NFPA 110?
A fuel oil room likely lands you in a hazardous location. This being adjacent to an electrical room may even have the electrical room within a classified area. What is the application for this building?