CloudXR on Local Network

We are currently working with the Hololens2 headset and the CloudXR 2.1 client. I was able to successfully stream content from my local PC to the Hololens over my wifi network that is also connected to the internet. However, there are serious issues with latency as the wifi network is quite busy. I then tried to stream content using CloudXR over a dedicated Wifi6 router that is not connected to the internet. I hoped that the uncluttered network would provide better latency results. However, I found that the client would not connect with the server. I suspect that this is because it is not connected to the internet. Is it necessary to be connected to the internet for the client to connect with server? Is there a way to test functionality over a local network?