Small Island with Big Profits: How Artificial Intelligence Turns Anguilla into a Revenue Powerhouse from Domain Sales
Anguilla, renowned for its pristine beaches and luxurious resorts, has unexpectedly emerged as a significant player in the global tech economy.
This small, self-governing British Overseas Territory in the Caribbean, with a population of around 18,000 as of 2020, has become one of the leading beneficiaries of the booming artificial intelligence (AI) industry.
The key to this transformation lies in its unique top-level domain (TLD) .ai, which was originally allocated in the 1980s during the nascent stages of the internet but has now become a lucrative asset.Over the past few years, the number of websites registered with the .ai domain has skyrocketed—more than 17 times since 2020, exceeding 850,000 sites according to BBC reports.
This growth is driven largely by tech entrepreneurs and startups seeking to leverage AI-related branding for innovative projects, including creating digital copies of humans, developing AI-driven services, and exploring new business models in the digital realm.In early 2024, revenue from the registration and sale of .ai domain names crossed 105.5 million Eastern Caribbean dollars (approximately 39 million USD).
This accounts for nearly a quarter of Anguilla’s total annual budget.
In comparison, tourism remains the island’s dominant economic sector, providing about 37% of the island’s income.
However, the income from domain sales signifies a strategic diversification, strengthening the economy against climate risks and natural disasters.The government forecasts further growth, projecting revenues to reach 132 million Eastern Caribbean dollars in 2025 and up to 138 million by 2026.
Such figures highlight how digital assets like domain names are reshaping Anguilla’s economic landscape, providing resilience and new sources of income.
The island has a history of being vulnerable to hurricanes; after Hurricane Irma in 2017, the UK provided aid worth 60 million pounds over five years for reconstruction projects.A pivotal step in stabilizing and expanding this sector was the signing of a five-year agreement in October 2024 with American firm Identity Digital, which manages internet domain registrations globally.
Since early 2025, all .ai domains have been migrated from local servers to a worldwide hosting network, ensuring continuous service even during storms or power outages.
The registration fee for a .ai domain ranges between $150 and $200, with renewal costs remaining similar every two years.Experts warn that despite expectations of declining costs due to technological advances, the price of maintaining and operating AI-driven domains is increasing as models become more sophisticated and computationally demanding.
This trend poses financial challenges for startups and businesses relying on AI technology, potentially affecting profitability and market stability.