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insulate boiler room walls?

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I'm having a new direct-vent wall-hung high efficiency gas boiler installed with an indirect hot water tank. The boiler room is in the basement 13' x 4' with 6' ceiling. Concrete walls and floor, partially below grade with one window. Should I insulate the room before intallation? Will it make a significant difference in cost savings or heat loss from the boiler and tank to the cool/cold room? The pipes will be insulated.

If so, how should I do it. One option is to actually frame out walls with 2x4's, add pink insulation and cover with fire rated sheetrock on which to hang the boiler. However this is a lot of work and I'm wondering if it's worth it and whether there is any other method. I understand that exposed foam on the walls is a fire hazard and would fail inspection.

Thanks for any insight.
David

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