Anguilla’s AI Domain Boom: Caribbean Island Earns Millions Fueling Economic Growth
Anguilla, a small Caribbean island with a population under 16,000, has emerged as a surprising beneficiary of the global artificial intelligence (AI) boom—bolstered not by high-tech startups on the island itself, but through ownership and management of the .ai country-code top-level domain (ccTLD). This domain suffix, originally assigned to Anguilla decades ago, has skyrocketed in demand as companies worldwide race to secure digital real estate aligned with AI technologies.
In 2023 alone, Anguilla generated approximately US $32 million from .ai domain registrations and renewals, representing over 20% of the island’s government revenue. This marked a dramatic increase compared to just five years earlier when domain revenue totaled less than $3 million. The rise is largely attributable to the mainstreaming of AI via platforms like ChatGPT, which debuted in November 2022 and quickly accelerated interest and investment in AI-related digital branding.
Since ChatGPT’s launch, .ai domain registrations have surged from around 50,000 in 2018 to over 600,000 by early 2025. Tech giants such as Google and OpenAI, along with startups and investors, are eager to acquire .ai domains—sometimes paying premium prices for coveted, concise names. This growing market has turned the .ai extension into one of the most valuable country-code domains worldwide.
Projected revenues continue to climb. The Anguilla government expects domain sales to reach approximately $38 million in 2024 and potentially hit $48 million in 2025. When the substantial renewal fees are factored in, monthly revenues may climb from around $3 million to $6 million. This steady income stream is increasingly vital for Anguilla’s economy, especially as tourism—the island’s traditional revenue base—remains susceptible to climate-related disruptions like hurricanes.
Revenue Management and Investment
Anguilla’s government has strategically partnered with U.S.-based Identity Digital, moving .ai domain hosting to global server networks to protect this valuable asset from natural disasters. Unlike other small nations with fixed-fee domain deals, Anguilla benefits from a revenue-sharing model that provides ongoing income proportional to domain sales and renewals.
This financial influx has empowered Anguilla to plan major infrastructure projects, including a $175 million airport expansion featuring a new terminal and runway improvements. Such developments aim to diversify and strengthen the island’s economy in the long term, leveraging the AI domain boom to fund improvements in connectivity and resilience.
A Unique Position in the AI Economy
The .ai extension’s value lies in its dual identity as both a country code and a widely recognized abbreviation for artificial intelligence. This serendipitous overlap has enabled Anguilla to tap into a booming sector without hosting related technology firms locally. Instead, the island functions as a digital landlord, collecting revenue from a global pool of AI enterprises.
As of 2025, over 850,000 .ai domains exist worldwide, with auctions for premium domain names fetching six-figure sums. The renewed interest continues to push the market forward, with Anguilla’s government forecasting growth to surpass $54 million in revenue by 2027.
Challenges and Outlook
While the AI boom delivers significant fiscal benefits, Anguilla faces the challenge of ensuring sustainable management of this new economic lifeline. Maintaining robust digital infrastructure, navigating international internet governance, and investing wisely in public services and infrastructure will be key to converting domain revenues into long-term prosperity.
Overall, Anguilla’s experience showcases how small nations can leverage unique digital assets to participate meaningfully in emerging global technology trends—even without direct involvement in day-to-day AI development.
Reported by the BBC and corroborated by multiple industry analyses, Anguilla’s AI domain strategy is a compelling example of innovation meets opportunity in the digital age.