Database server administrators can use the New Geodatabase command on the database server context menu in ArcGIS for Desktop to create a geodatabase on a database server.
Creating a geodatabase creates a database on the SQL Server Express instance and creates a geodatabase in the dbo schema in the database.
Follow these steps to create a desktop or workgroup geodatabase on a database server:
- Log in as a server administrator, start ArcMap, and open the Catalog window.
 - In the Catalog tree, right-click the database server on which you want to create a geodatabase.
 - Click New Geodatabase.
 - Type a name for the new geodatabase in the Geodatabase name text box. 
The name must begin with a letter, cannot contain spaces or special characters (such as *, &, !, %, ., +, or -), and has a maximum length of 31 characters when combined with your server name.
 - If you want to change the database file location, specify the new location in the Geodatabase file text box by clicking the ellipsis button (...) and browsing to the location.
 - Type the size of the new geodatabase in the Initial Size text box.
 - Choose MB or GB from the Units drop-down menu, or use the default size of 100 MB. 
Regardless of the initial size, the geodatabase grows as it needs to, up to 10 GB.
 - Click OK.
 
A progress bar displays while the database file and geodatabase schema are created. When complete, the new geodatabase appears on the Contents tab and in the Catalog tree.