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Node.js can connect to a MySQL database hosted on Digital Ocean, allowing developers to store and retrieve data from the database within their Node.js application. The connection can be established using a MySQL driver and the appropriate credentials. Digital Ocean provides a cloud-hosted MySQL database service called Managed Databases, which is a fully managed solution for easy deployment, scaling, and management of MySQL databases. Using Node.js with Digital Ocean Managed Databases enables developers to build scalable and reliable applications that can handle large volumes of data.