Matomo tracking, reporting, API do not require access to the Internet, and will happily function without access to Internet.

However starting in Matomo (Piwik) 2.0, the new Marketplace feature calls the Marketplace API (hosted at plugins.matomo.org and themes.matomo.org). If there is no internet connection when Matomo tries to call the API, when you visit any page in the Admin of Matomo, you may experience the following error message: curl_exec: Connection timed out after 3000 milliseconds or curl_exec: couldn't connect to host or this error: Warning: file_get_contents (http://plugins.matomo.org/api/2.0/plugins) failed to open stream: HTTP request failed!

To prevent this error, you may disable the “Marketplace” by adding enable_marketplace = 0 to the [General] section of your config/config.ini.php file.
You can still download free plugins, as well as purchase premium plugins, directly on the Marketplace. After you download or purchase plugin(s) on the Marketplace, you can install them manually in your Matomo.

You can also disable all other internet-features in Matomo (update-check, GeoIP updater, etc.) by adding enable_internet_features = 0 to the [General] section of your config/config.ini.php file. Starting with Matomo 3.6.0 this will also disable the marketplace.

Any questions?

Many answers and more information about Matomo you can find here:

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