Another possible thought....if he's always been ok with this arrangement up until now, and this has started suddenly, something could be triggering a bout of insomnia.
It would be a good idea to get him a thorough health check. If results all come up clean, maybe you could ask your vet about any mild medication which could help the insomnia? You don't want to 'drug your dog up' necessarily, but there might be something mild, or even a natural remedy which will help him to get calmer at night time, relax, and sleep better.
Lavender oil can help (for goodness sake, don't let him consume it, or get it actually on his fur) but sprinkling a little on a curtain or cloth well up out of his reach will get the calming aroma into the air. It can be very effective for relaxation and to help with natural sleep.
If he's generally fit and well, then there is nothing quite like excellent exercise during the day to make him sleep well at night. So if he's not got any health problems, look at the possibility that he might not be burning off enough energy.
I really think you need to rule out a physical health problem first. The kind of salivation you describe can stem from illness or frustration and stress, so take him to the vet for a checkup.
How much time does he have daily with his human pack? If he's spent most of his life alone while everyone is at work/school and then alone and also alone and separate in a shed at night time, that may explain a whole lot right there. Dogs are very social pack animals. Deprive them of a pack - either dog or human - and they can become physically and psychologically ill.
Is there any chance that there may be some animals outside at night and he is wanting to go and check it out.Sometimes when they can hear other animals outside stirring around they will bark and carry on like that.When my outside babies hear dogs barking or there is some strange animal outside stirring around they will howl all night and then it gets the inside babies barking as well.Also if there is a female in heat it could also be causing him to behave like that.My males have been neutered and they will still carry on all night when a female is heat.Take care and Good Luck.