Can i use で instead of に in this context


In the phrase "ATMはビルの１階にあります" Can i say ATMはビルの１階であります? Someone told me it
doesn't sound natural. But i didn't understand why




You cannot use で in this case. The following page lists several examples of
what makes で and に different:
<https://www.kanshudo.com/grammar/%E3%81%A7_%E3%81%AB>

In particular, first section mentions:

> For location, で is used to mark the location where an event occurred (ie, a
> focus on action). に is used to indicate object locations, destinations or
> directions (in the absence of a specific 'event').

I think this applies well to your sentence.

