I always assumed it referred to the room (or shed) that houses the equipment.
Oh, and a word that means funny, and nothing else, how about zany? I believe it derives from Zani, a comic character in Italian theatre, and in English it has no meaning apart from funny.
Don’t think so - because one of the alternatives (still in existence today in mobile home toilets) is the Valve Closet - where the noxious fumes are closed off by a sprung flap.
It means the room now, but it originally meant the water-based valve - as distinct from other methods of closing the soil pipe - such as valve closets, pan closets and plunger closets.
btw, I have never seen “Risible” used for “that joke was risible” but more like for “that proposal was risible”. I mean, not to say something was ha-ha funny but with some contempt.