Hi Andrew Long | DaniHar Technology,
Thanks for reaching out to Microsoft!
Currently Graph API does not directly support creating zip files. Since this feature/functionality is presently not available, you can submit a feature request idea using this support link, which will be monitored by Microsoft team and make the enhancements to Microsoft Graph APIs. I will also upvote for you.
You can create the zip file locally or on a server before uploading it to the destination folder. Once you have the zip file, you can upload it to the destination folder in SharePoint using the Graph API.
As mentioned in document, Use Graph API for the file size up to 250 MB.
PUT /users/{user-id}/drive/items/{parent-id}:/{filename}:/content
If the file size exceeds 250MB, Create an upload session to allow your app to upload files up to the maximum file size. An upload session allows your app to upload ranges of the file in sequential API requests
Hope this helps.
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