Anguilla, a Caribbean island nation with a population of approximately 15,000, has emerged as an unexpected financial beneficiary of the global artificial intelligence (AI) boom. The island's country-code top-level domain, .ai, has seen a dramatic surge in registrations by tech companies, generating significant revenue that now accounts for a substantial portion of its government's income. This digital windfall, largely propelled by the increased interest in AI since late 2022, is transforming the island's economic landscape.
"The most underrated winner of the AI boom is the 15,000 person Caribbean island of Anguilla (which has a GDP of ~$320m)," stated Trung Phan in a social media post, highlighting the island's unique position.
Assigned to Anguilla in the 1990s, the .ai domain was largely overlooked until the recent explosion of interest in artificial intelligence. Companies worldwide, including major players like Elon Musk's X.ai and Stability.ai, have sought out the .ai extension to brand their AI-driven ventures. This fortuitous alignment of the domain's abbreviation with "artificial intelligence" has created an unprecedented demand.
In 2023 alone, registrations of .ai domain names surged from 144,000 in 2022 to 354,000, generating approximately US$32 million in revenue for Anguilla. This figure represents over 20 percent of the government's total revenue for the year, a significant increase from previous years. Projections indicate that revenue from .ai domain registrations could exceed $37 million in 2024, with some estimates suggesting it could even double 2023's figures.
The substantial influx of funds provides a crucial opportunity for Anguilla to diversify its economy, which has historically been heavily reliant on tourism. The government has committed to a prudent fiscal strategy, prioritizing debt reduction and investing in key infrastructure projects, such as airport development and renewable energy initiatives. This strategic investment aims to bolster the island's resilience against external economic shocks.
Anguilla charges approximately $140 for a two-year .ai domain registration, a pricing model that has proven highly successful. To manage the explosive growth and ensure scalability, Anguilla transitioned operational control of its domain registry to Identity Digital in January 2025, while retaining ownership and a share of the ongoing revenue. While the initial rush of registrations may stabilize, officials project that .ai will continue to contribute around 15% of public income annually, solidifying its role as a long-term economic engine.