diff --git a/chat_server/server_config.py b/chat_server/server_config.py
index 05089e70..f6eb4d40 100644
--- a/chat_server/server_config.py
+++ b/chat_server/server_config.py
@@ -27,10 +27,12 @@
 # SOFTWARE,  EVEN IF ADVISED OF THE POSSIBILITY OF SUCH DAMAGE.
 
 import os
+from typing import Optional
 
 from config import Configuration
 from chat_server.server_utils.sftp_utils import init_sftp_connector
 from utils.logging_utils import LOG
+from utils.database_utils import DatabaseController
 
 server_config_path = os.environ.get(
     "CHATSERVER_CONFIG", "~/.local/share/neon/credentials.json"
@@ -40,17 +42,20 @@
 )
 
 
-def _init_db_controller(db_config: dict):
+def _init_db_controller(db_config: dict) -> Optional[DatabaseController]:
     from chat_server.server_utils.db_utils import DbUtils
-    from utils.database_utils import DatabaseController
 
     # Determine configured database dialect
     dialect = db_config.pop("dialect", "mongo")
 
-    # Create a database connection
-    db_controller = DatabaseController(config_data=db_config)
-    db_controller.attach_connector(dialect=dialect)
-    db_controller.connect()
+    try:
+        # Create a database connection
+        db_controller = DatabaseController(config_data=db_config)
+        db_controller.attach_connector(dialect=dialect)
+        db_controller.connect()
+    except Exception as e:
+        LOG.exception(f"DatabaseController init failed: {e}")
+        return None
 
     # Initialize convenience class
     DbUtils.init(db_controller)
@@ -68,14 +73,15 @@ def _init_db_controller(db_config: dict):
     # ovos-config has built-in mechanisms for loading configuration files based
     # on envvars, so the configuration structure is simplified
     from ovos_config.config import Configuration
-    app_config = Configuration().get("CHAT_SERVER")
+    app_config = Configuration().get("CHAT_SERVER") or dict()
     env_spec = os.environ.get("KLAT_ENV")
     if env_spec and app_config.get(env_spec):
         LOG.warning("Legacy configuration handling KLAT_ENV envvar")
         app_config = app_config.get(env_spec)
     db_controller = _init_db_controller(app_config.get("connection_properties",
                                                        Configuration().get(
-                                                           "DATABASE_CONFIG")))
+                                                           "DATABASE_CONFIG",
+                                                           {})))
 
 LOG.info(f"App config: {app_config}")