Hi JmATK,
You can install MIM on a separate server or on the same server as SQL server.
If you have SQL Server running on a separate server from MIM, you’ll need to install SQL Server native client (either for
2008 or
2012) where you installed MIM.
If SQL Server is on the same server as MIM, you may use a local account for this service. However, if you use a
remote SQL, you must use a domain account. If the account is in another domain from the SQL Server, it must be in the same forest.
You'll need to create a service account in your domain to run the MIM Synchronization Service. This account should have the “Log on as a service” and “Run as a service” permissions granted to it on the machine where the MIM Synchronization Service will be
installed. (These permissions will normally be assigned automatically during setup of the service.)
The account running setup for MIM must be a SQL Server Admin on the instance of SQL Server where the MIM sync database will be hosted. The account must have local administrator permissions on the machine where the MIM Synchronization service will be installed.
Refer to the following article about installing Microsoft Identity Manager for User Profiles in SharePoint Server 2016:
https://technet.microsoft.com/en-us/library/mt627723(v=office.16).aspx
Best Regards，
Lisa Chen
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