How to integrate Digital ocean MCP with Vercel AI SDK v6

This guide walks you through connecting Digital ocean to Vercel AI SDK v6 using the Composio tool router. By the end, you'll have a working Digital ocean agent that can spin up a droplet for staging environment, provision a new postgresql database cluster, create a dns a record for your domain through natural language commands. This guide will help you understand how to give your Vercel AI SDK agent real control over a Digital ocean account through Composio's Digital ocean MCP server. Before we dive in, let's take a quick look at the key ideas and tools involved.

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DigitalOcean is a cloud platform for deploying, managing, and scaling infrastructure. Its simplicity and developer-friendly tools let you launch projects quickly and manage resources effortlessly.

48 Tools

Introduction

This guide walks you through connecting Digital ocean to Vercel AI SDK v6 using the Composio tool router. By the end, you'll have a working Digital ocean agent that can spin up a droplet for staging environment, provision a new postgresql database cluster, create a dns a record for your domain through natural language commands.

This guide will help you understand how to give your Vercel AI SDK agent real control over a Digital ocean account through Composio's Digital ocean MCP server.

Before we dive in, let's take a quick look at the key ideas and tools involved.

Also integrate Digital ocean with

TL;DR

Here's what you'll learn:
  • How to set up and configure a Vercel AI SDK agent with Digital ocean integration
  • Using Composio's Tool Router to dynamically load and access Digital ocean tools
  • Creating an MCP client connection using HTTP transport
  • Building an interactive CLI chat interface with conversation history management
  • Handling tool calls and results within the Vercel AI SDK framework

What is Vercel AI SDK?

The Vercel AI SDK is a TypeScript library for building AI-powered applications. It provides tools for creating agents that can use external services and maintain conversation state.

Key features include:

  • streamText: Core function for streaming responses with real-time tool support
  • MCP Client: Built-in support for Model Context Protocol via @ai-sdk/mcp
  • Step Counting: Control multi-step tool execution with stopWhen: stepCountIs()
  • OpenAI Provider: Native integration with OpenAI models

What is the Digital ocean MCP server, and what's possible with it?

The Digital ocean MCP server is an implementation of the Model Context Protocol that connects your AI agent and assistants like Claude, Cursor, etc directly to your DigitalOcean account. It provides structured and secure access to your cloud infrastructure, so your agent can perform actions like creating droplets, managing domains and DNS, provisioning databases, and organizing resources on your behalf.

  • Automated droplet provisioning: Instantly spin up new virtual machines (droplets) by specifying name, region, size, and image to quickly scale your infrastructure.
  • Database and block storage management: Have your agent create managed database clusters or persistent block storage volumes with custom configurations for seamless backend scaling.
  • Domain and DNS record automation: Simplify domain setup and DNS management by letting your agent create new domains and add or update DNS records as needed.
  • Kubernetes and firewall setup: Easily deploy Kubernetes clusters and configure firewalls by defining rules, regions, and node pools—without manual dashboard work.
  • SSH key and resource tagging: Register new SSH keys for secure access or organize your infrastructure with custom tags, making resource management effortless and consistent.

What is the Composio tool router, and how does it fit here?

What is Composio SDK?

Composio's Composio SDK helps agents find the right tools for a task at runtime. You can plug in multiple toolkits (like Gmail, HubSpot, and GitHub), and the agent will identify the relevant app and action to complete multi-step workflows. This can reduce token usage and improve the reliability of tool calls. Read more here: Getting started with Composio SDK

The tool router generates a secure MCP URL that your agents can access to perform actions.

How the Composio SDK works

The Composio SDK follows a three-phase workflow:

  1. Discovery: Searches for tools matching your task and returns relevant toolkits with their details.
  2. Authentication: Checks for active connections. If missing, creates an auth config and returns a connection URL via Auth Link.
  3. Execution: Executes the action using the authenticated connection.

Step-by-step Guide

Step by step09 STEPS
1

Prerequisites

Before you begin, make sure you have:
  • Node.js and npm installed
  • A Composio account with API key
  • An OpenAI API key
2

Getting API Keys for OpenAI and Composio

OpenAI API Key
  • Go to the OpenAI dashboard and create an API key. You'll need credits to use the models, or you can connect to another model provider.
  • Keep the API key safe.
Composio API Key
  • Log in to the Composio dashboard.
  • Navigate to your API settings and generate a new API key.
  • Store this key securely as you'll need it for authentication.
3

Install required dependencies

bash
npm install @ai-sdk/openai @ai-sdk/mcp @composio/core ai dotenv

First, install the necessary packages for your project.

What you're installing:

  • @ai-sdk/openai: Vercel AI SDK's OpenAI provider
  • @ai-sdk/mcp: MCP client for Vercel AI SDK
  • @composio/core: Composio SDK for tool integration
  • ai: Core Vercel AI SDK
  • dotenv: Environment variable management
4

Set up environment variables

bash
OPENAI_API_KEY=your_openai_api_key_here
COMPOSIO_API_KEY=your_composio_api_key_here
COMPOSIO_USER_ID=your_user_id_here

Create a .env file in your project root.

What's needed:

  • OPENAI_API_KEY: Your OpenAI API key for GPT model access
  • COMPOSIO_API_KEY: Your Composio API key for tool access
  • COMPOSIO_USER_ID: A unique identifier for the user session
5

Import required modules and validate environment

typescript
import "dotenv/config";
import { openai } from "@ai-sdk/openai";
import { Composio } from "@composio/core";
import * as readline from "readline";
import { streamText, type ModelMessage, stepCountIs } from "ai";
import { createMCPClient } from "@ai-sdk/mcp";

const composioAPIKey = process.env.COMPOSIO_API_KEY;
const composioUserID = process.env.COMPOSIO_USER_ID;

if (!process.env.OPENAI_API_KEY) throw new Error("OPENAI_API_KEY is not set");
if (!composioAPIKey) throw new Error("COMPOSIO_API_KEY is not set");
if (!composioUserID) throw new Error("COMPOSIO_USER_ID is not set");

const composio = new Composio({
  apiKey: composioAPIKey,
});
What's happening:
  • We're importing all necessary libraries including Vercel AI SDK's OpenAI provider and Composio
  • The dotenv/config import automatically loads environment variables
  • The MCP client import enables connection to Composio's tool server
6

Create Tool Router session and initialize MCP client

typescript
async function main() {
  // Create a tool router session for the user
  const session = await composio.create(composioUserID!, {
    toolkits: ["digital_ocean"],
  });

  const mcpUrl = session.mcp.url;
What's happening:
  • We're creating a Tool Router session that gives your agent access to Digital ocean tools
  • The create method takes the user ID and specifies which toolkits should be available
  • The returned mcp object contains the URL and authentication headers needed to connect to the MCP server
  • This session provides access to all Digital ocean-related tools through the MCP protocol
7

Connect to MCP server and retrieve tools

typescript
const mcpClient = await createMCPClient({
  transport: {
    type: "http",
    url: mcpUrl,
    headers: session.mcp.headers, // Authentication headers for the Composio MCP server
  },
});

const tools = await mcpClient.tools();
What's happening:
  • We're creating an MCP client that connects to our Composio Tool Router session via HTTP
  • The mcp.url provides the endpoint, and mcp.headers contains authentication credentials
  • The type: "http" is important - Composio requires HTTP transport
  • tools() retrieves all available Digital ocean tools that the agent can use
8

Initialize conversation and CLI interface

typescript
let messages: ModelMessage[] = [];

console.log("Chat started! Type 'exit' or 'quit' to end the conversation.\n");
console.log(
  "Ask any questions related to digital_ocean, like summarize my last 5 emails, send an email, etc... :)))\n",
);

const rl = readline.createInterface({
  input: process.stdin,
  output: process.stdout,
  prompt: "> ",
});

rl.prompt();
What's happening:
  • We initialize an empty messages array to maintain conversation history
  • A readline interface is created to accept user input from the command line
  • Instructions are displayed to guide the user on how to interact with the agent
9

Handle user input and stream responses with real-time tool feedback

typescript
rl.on("line", async (userInput: string) => {
  const trimmedInput = userInput.trim();

  if (["exit", "quit", "bye"].includes(trimmedInput.toLowerCase())) {
    console.log("\nGoodbye!");
    rl.close();
    process.exit(0);
  }

  if (!trimmedInput) {
    rl.prompt();
    return;
  }

  messages.push({ role: "user", content: trimmedInput });
  console.log("\nAgent is thinking...\n");

  try {
    const stream = streamText({
      model: openai("gpt-5"),
      messages,
      tools,
      toolChoice: "auto",
      stopWhen: stepCountIs(10),
      onStepFinish: (step) => {
        for (const toolCall of step.toolCalls) {
          console.log(`[Using tool: ${toolCall.toolName}]`);
          }
          if (step.toolCalls.length > 0) {
            console.log(""); // Add space after tool calls
          }
        },
      });

      for await (const chunk of stream.textStream) {
        process.stdout.write(chunk);
      }

      console.log("\n\n---\n");

      // Get final result for message history
      const response = await stream.response;
      if (response?.messages?.length) {
        messages.push(...response.messages);
      }
    } catch (error) {
      console.error("\nAn error occurred while talking to the agent:");
      console.error(error);
      console.log(
        "\nYou can try again or restart the app if it keeps happening.\n",
      );
    } finally {
      rl.prompt();
    }
  });

  rl.on("close", async () => {
    await mcpClient.close();
    console.log("\n👋 Session ended.");
    process.exit(0);
  });
}

main().catch((err) => {
  console.error("Fatal error:", err);
  process.exit(1);
});
What's happening:
  • We use streamText instead of generateText to stream responses in real-time
  • toolChoice: "auto" allows the model to decide when to use Digital ocean tools
  • stopWhen: stepCountIs(10) allows up to 10 steps for complex multi-tool operations
  • onStepFinish callback displays which tools are being used in real-time
  • We iterate through the text stream to create a typewriter effect as the agent responds
  • The complete response is added to conversation history to maintain context
  • Errors are caught and displayed with helpful retry suggestions

Complete Code

Here's the complete code to get you started with Digital ocean and Vercel AI SDK:

typescript
import "dotenv/config";
import { openai } from "@ai-sdk/openai";
import { Composio } from "@composio/core";
import * as readline from "readline";
import { streamText, type ModelMessage, stepCountIs } from "ai";
import { createMCPClient } from "@ai-sdk/mcp";

const composioAPIKey = process.env.COMPOSIO_API_KEY;
const composioUserID = process.env.COMPOSIO_USER_ID;

if (!process.env.OPENAI_API_KEY) throw new Error("OPENAI_API_KEY is not set");
if (!composioAPIKey) throw new Error("COMPOSIO_API_KEY is not set");
if (!composioUserID) throw new Error("COMPOSIO_USER_ID is not set");

const composio = new Composio({
  apiKey: composioAPIKey,
});

async function main() {
  // Create a tool router session for the user
  const session = await composio.create(composioUserID!, {
    toolkits: ["digital_ocean"],
  });

  const mcpUrl = session.mcp.url;

  const mcpClient = await createMCPClient({
    transport: {
      type: "http",
      url: mcpUrl,
      headers: session.mcp.headers, // Authentication headers for the Composio MCP server
    },
  });

  const tools = await mcpClient.tools();

  let messages: ModelMessage[] = [];

  console.log("Chat started! Type 'exit' or 'quit' to end the conversation.\n");
  console.log(
    "Ask any questions related to digital_ocean, like summarize my last 5 emails, send an email, etc... :)))\n",
  );

  const rl = readline.createInterface({
    input: process.stdin,
    output: process.stdout,
    prompt: "> ",
  });

  rl.prompt();

  rl.on("line", async (userInput: string) => {
    const trimmedInput = userInput.trim();

    if (["exit", "quit", "bye"].includes(trimmedInput.toLowerCase())) {
      console.log("\nGoodbye!");
      rl.close();
      process.exit(0);
    }

    if (!trimmedInput) {
      rl.prompt();
      return;
    }

    messages.push({ role: "user", content: trimmedInput });
    console.log("\nAgent is thinking...\n");

    try {
      const stream = streamText({
        model: openai("gpt-5"),
        messages,
        tools,
        toolChoice: "auto",
        stopWhen: stepCountIs(10),
        onStepFinish: (step) => {
          for (const toolCall of step.toolCalls) {
            console.log(`[Using tool: ${toolCall.toolName}]`);
          }
          if (step.toolCalls.length > 0) {
            console.log(""); // Add space after tool calls
          }
        },
      });

      for await (const chunk of stream.textStream) {
        process.stdout.write(chunk);
      }

      console.log("\n\n---\n");

      // Get final result for message history
      const response = await stream.response;
      if (response?.messages?.length) {
        messages.push(...response.messages);
      }
    } catch (error) {
      console.error("\nAn error occurred while talking to the agent:");
      console.error(error);
      console.log(
        "\nYou can try again or restart the app if it keeps happening.\n",
      );
    } finally {
      rl.prompt();
    }
  });

  rl.on("close", async () => {
    await mcpClient.close();
    console.log("\n👋 Session ended.");
    process.exit(0);
  });
}

main().catch((err) => {
  console.error("Fatal error:", err);
  process.exit(1);
});

Conclusion

You've successfully built a Digital ocean agent using the Vercel AI SDK with streaming capabilities! This implementation provides a powerful foundation for building AI applications with natural language interfaces and real-time feedback.

Key features of this implementation:

  • Real-time streaming responses for a better user experience with typewriter effect
  • Live tool execution feedback showing which tools are being used as the agent works
  • Dynamic tool loading through Composio's Tool Router with secure authentication
  • Multi-step tool execution with configurable step limits (up to 10 steps)
  • Comprehensive error handling for robust agent execution
  • Conversation history maintenance for context-aware responses

You can extend this further by adding custom error handling, implementing specific business logic, or integrating additional Composio toolkits to create multi-app workflows.
TOOLS

Supported Tools

Every Digital ocean action and event your agent gets out of the box.

Create Custom Image

Creates a custom image in DigitalOcean by importing a Linux VM disk image from a publicly accessible URL.

Create Database Cluster

Creates a new managed database cluster on DigitalOcean.

Create New Block Storage Volume

Tool to create a new block storage volume.

Create New Domain

Creates a new domain in DigitalOcean's DNS management system.

Create Domain Record

Tool to create a new DNS record for a domain.

Create New Droplet

Tool to create a new Droplet.

Create New Firewall

Creates a new cloud firewall with custom inbound and outbound rules.

Create New Kubernetes Cluster

Creates a new DigitalOcean Kubernetes (DOKS) cluster with managed control plane.

Create New Load Balancer

Tool to create a new load balancer.

Create New SSH Key

Registers a new SSH public key with your DigitalOcean account.

Create New Tag

Creates a new tag in DigitalOcean for organizing and grouping resources.

Create New VPC

Creates a new Virtual Private Cloud (VPC) in a specified DigitalOcean region.

Delete Block Storage Volume

Permanently deletes a block storage volume by its unique ID.

Delete Database Cluster

Tool to delete a database cluster by UUID.

Delete Domain

Deletes a domain from DigitalOcean DNS.

Delete Domain Record

Tool to delete a DNS record by its record ID for a domain.

Delete Existing Droplet

Tool to delete a Droplet by ID.

Delete Firewall

Tool to delete a firewall by ID.

Delete Image

Deletes a user-created custom image or snapshot from your DigitalOcean account by its numeric ID.

Delete Load Balancer

Tool to delete a load balancer instance by ID.

Delete SSH Key

Tool to delete a public SSH key.

Delete Tag

Deletes a tag from your DigitalOcean account.

Delete VPC

Delete a VPC (Virtual Private Cloud) by its unique identifier.

List All Databases

Tool to list all managed database clusters on your account.

List All Domains

Lists all DNS domains configured in your DigitalOcean account.

List All Droplets

Lists all Droplets (virtual machines) in your DigitalOcean account with pagination support.

List All Firewalls

List all cloud firewalls configured in your DigitalOcean account.

List All Images

Tool to list all images available on your account.

List All Kubernetes Clusters

Tool to list all Kubernetes clusters on your account.

List All Load Balancers

List all load balancers in your DigitalOcean account with pagination support.

List All Snapshots

Tool to list all snapshots available on your DigitalOcean account.

List All SSH Keys

Lists all SSH keys associated with your DigitalOcean account.

List All Tags

Tool to list all tags in your account.

List All Volumes

Tool to list all block storage volumes available on your account.

List All VPCs

Tool to list all VPCs on your account.

List Apps

Tool to list all App Platform apps in your DigitalOcean account.

List Database Options

Lists all available configuration options for DigitalOcean managed database clusters, including supported engines (PostgreSQL, MySQL, MongoDB, Valkey, Kafka, OpenSearch), versions, regions, and cluster sizes/layouts.

List Domain Records

Tool to list all DNS records for a domain.

Retrieve Domain

Retrieves complete details about a specific domain including its TTL and DNS zone file configuration.

Retrieve Domain Record

Tool to retrieve a specific DNS record for a domain by its record ID.

Retrieve Existing Droplet

Retrieve detailed information about a specific DigitalOcean Droplet by its unique numeric ID.

Retrieve Existing Image

Tool to retrieve information about an image by ID or slug.

Retrieve Tag

Tool to retrieve an individual tag by name.

Retrieve VPC

Tool to retrieve details about a specific VPC by its ID.

Tag Resource

Tool to tag resources by name.

Untag Resource

Tool to untag resources by tag name.

Update Domain Record

Tool to update an existing DNS record for a domain.

Update VPC

Tool to update information about a VPC.

FAQ

Frequently asked questions

With a standalone Digital ocean MCP server, the agents and LLMs can only access a fixed set of Digital ocean tools tied to that server. However, with the Composio Tool Router, agents can dynamically load tools from Digital ocean and many other apps based on the task at hand, all through a single MCP endpoint.

Yes, you can. Vercel AI SDK v6 fully supports MCP integration. You get structured tool calling, message history handling, and model orchestration while Tool Router takes care of discovering and serving the right Digital ocean tools.

Yes, absolutely. You can configure which Digital ocean scopes and actions are allowed when connecting your account to Composio. You can also bring your own OAuth credentials or API configuration so you keep full control over what the agent can do.

All sensitive data such as tokens, keys, and configuration is fully encrypted at rest and in transit. Composio is SOC 2 Type 2 compliant and follows strict security practices so your Digital ocean data and credentials are handled as safely as possible.

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