WP installed on one server, MySQL on another: is this okay?

Hello. This may not be the correct forum, but I’m not sure where to start and I can’t seem to find the answer through the FAQs and other information on the WP site. We are going to be installing a new WP blog, but we’re not running MySQL directly on our server. Another server on campus (separate box, separate IP address) is offering to host the DB, and before we make arrangements for this, is that a permissible arrangement? Thank you.