Most internships are with local companies.
However, several excellent internship possibilities exist with non-local employers. If this kind of opportunity interests you, you should discuss your interest with the internship advisor. Note that while many companies pay student interns, others do not. Whether or not an internship is paid is entirely at the discretion of the employer. If you do not secure your own internship, the internship advisor will make every effort to place students for whom pay is especially important with a company that does pay interns.