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Hello. Yes, the system can be operated locally without any internet connection you just need a monitor for the initial set up. Once set up is complete, the cameras will record locally to the DVR even if there is no internet connection. You only need an internet connection if you’d like to view the system on a smartphone app or to update its firmware. This system comes with a 64GB MicroSD Card however you can purchase an HDD separately and install it if you wish to have a larger memory on your system. Your DVR supports recording to either a 3.5” SATA or a 2.5” SATA hard drive. The largest hard drive you can connect is 6TB (terabyte). We recommend that you purchase a drive that is surveillance rated, such as the Western Digital Purple™ and Seagate Skyhawk™ range of drives. I hope this helps. LV - Swann Team
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