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Building Your First Server: Windows Server Setup and Active Directory

Posted on January 16, 2026

Imagine having a master computer that controls and manages all the other computers in a network, just like a captain commanding a ship. That is essentially what a Domain Controller does, and today we are going to build one from scratch. We will walk through the initial configuration of Windows Server 2025, install the necessary Active Directory services, and verify that our system is running correctly. This is a fundamental skill for anyone interested in IT, so let us get started and build this home lab together.

The first step in our journey involves giving our server a proper identity. When you first install Windows Server, the system assigns a generic, random hostname that is completely comprised of random letters and numbers. This is very difficult to memorize and makes management a nightmare later on. Therefore, before we do anything complex, we need to rename the server to something sensible that reflects its purpose. For example, since we are building a file server or a domain controller, a name like “fileserver01” is much more logical. To do this, you need to right-click on “This PC” and go to Properties. From there, access the Advanced System Settings and select the Computer Name tab. You will see a button labeled “Change,” which allows you to overwrite that confusing generic name with your chosen name. After you type in your new name, the system will require a restart to apply these changes. Once the server reboots, it is good practice to verify the change. You can do this by opening the Command Prompt and typing a simple command to check the hostname.

hostname

If the command returns the new name you selected, you have successfully completed the first major step. The next critical phase is ensuring your server is healthy and secure through Windows Updates. It might seem boring, but configuring Windows Updates is a best practice that you must not skip. Before a server becomes a critical Domain Controller, it needs to be fully patched to ensure stability and security. Since updates often require multiple reboots, you want to get this out of the way now so it does not interrupt your configuration process later. You can access this by going to Settings and selecting Windows Update. If you see a list of available updates, click “Install All” and be patient. Let the server download everything and restart as many times as needed. Once the server is updated, we also need to confirm that Remote Management is enabled. This feature allows you to manage the server from another computer without having to physically sit in front of it, which mimics how IT professionals work in the real world. You can find this setting in the Server Manager under the Local Server tab.

Now that our server is properly named and updated, we are ready for the main event: installing Active Directory Domain Services. You need to open the Server Manager again. In the top right corner, click on “Manage” and then select “Add Roles and Features.” This will launch a wizard that guides you through the installation. You will proceed by clicking “Next” until you reach the server selection screen, ensuring your server is highlighted. When you reach the “Server Roles” section, this is where you must check the box for “Active Directory Domain Services.” A pop-up window will appear showing you various tools and features that are required for this role; simply click “Add Features” to accept them. Continue clicking “Next” through the remaining screens until you reach the confirmation page, and then click “Install.” It is very important that you do not close this wizard immediately after the installation bar finishes. You need to wait until you see a notification that the installation has succeeded.

Once the installation is successful, the server has the software, but it is not a Domain Controller yet. You will see a link within the wizard that says “Promote this server to a domain controller.” You must click this link to start the configuration wizard. Since we are building a new environment from scratch, you must select the option to “Add a new forest.” This is where you decide on your domain name. For a home lab, you should avoid using real public domain names to prevent conflicts. A name ending in “.local,” such as “homelab.local,” is perfect for learning purposes. After setting the name, the wizard will ask you to set a Directory Services Restore Mode (DSRM) password. Please write this down or memorize it, as it is crucial for recovery. You can generally accept the default settings for DNS and file paths by clicking “Next” through the subsequent screens. Finally, the wizard will perform a prerequisite check. If you see a green checkmark indicating all checks passed successfully, click “Install.” The server will configure itself and automatically reboot.

After the server restarts, you will notice a significant change on the login screen. Your user account will now be prefixed with the domain name you created, indicating that you are logging into a domain rather than just a local machine. To confirm that everything was installed correctly, we need to check the administrative tools. In Windows Server 2025, the location of these tools has changed slightly compared to older versions. You need to go to the Start menu, select “All,” and scroll down to “Windows Tools.” When you open this, you should see a list of new applications, specifically “Active Directory Users and Computers,” “Group Policy Management,” and “DNS.” If these tools are present and open without errors, congratulations! You have successfully built a Domain Controller and set up the foundation for a professional-grade network environment.

We have now successfully transformed a standard Windows Server into a fully functional Domain Controller. You learned the importance of initial server configuration, such as renaming the host and installing updates, which sets the stage for a stable environment. We then navigated the technical steps of installing the Active Directory Domain Services role and promoting the server, effectively creating a new digital forest. I recommend you try this process a few times in a virtual machine to build muscle memory. In the next stage of your learning, you would typically connect a client computer, like Windows 11, to this new domain to see how they interact. Keep practicing, and remember that every expert started exactly where you are right now.

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