Been there done this on a CNC mill in a basement, here are the pro's and con's of two methods...
Flood Coolant - Pro's are cools and lubricates well. You can rig a hose and use the coolant for washing down the enclosure. Con's include short of a full and complete enclosure including the top you won't be able to run the coolant at a high enough pressure to blast the chips out of the cut which is pretty important. You are talking 250-1000 psi coolant systems on industrial CNC machines. Even at modest coolant pressures, steady stream not capable of blasting chips coolant will fling up and out the top of the machine all over the floor. You will become one with a floor mop. Your coolant drains will plug up with chips. Cleaning up the wet chips isn't a pleasant task. Your coolant will go rancid. Even with the best full synthetic coolant, aerator, and oil skimmer. It will stink and colonies of god knows what will grow and plug up the pump and hoses. Its a nasty business. At proper concentrations you won't have a rust issue with water based coolants except under a vise this area always seems to rust. The coolant leaves a sticky film on everything including your parts, that's the rust preventative.
Micro-Drop Coolant - I have an Accu-lube system. Pro's are 1 gallon of lubricant will last pretty much forever. The Accu-lube system delivers a tiny spritz of coolant droplets onto the tool and part via air, this is NOT a mist system. Air does the cooling and blasts the chips out of the way, the lubricant does the lubricating. Will never go rancid. Properly adjusted your chips will be mostly dry so easy clean up. No risk of rust ever as there is no water. The lubricant is fairly thin, it doesn't get sticky or build up. Con's include you need air and dry air no less, you don't want to be blasting your machine with water droplets. Long story short I settled on a California Air compressor, 10cfm with air drying system. Its a LOT quieter than pretty much any other type of compressor short of a rotary screw, 60-70 decibel range but noise is noise. The compressor will cycle on every few minutes during use. But if you are talking your average gear head mill I doubt you will hear the compressor over the blasting noise the mill makes.