diff --git a/src/init/features/dataconnect/index.spec.ts b/src/init/features/dataconnect/index.spec.ts
index afec6ecf99e..40a732dd2f5 100644
--- a/src/init/features/dataconnect/index.spec.ts
+++ b/src/init/features/dataconnect/index.spec.ts
@@ -39,7 +39,7 @@ describe("init dataconnect", () => {
         requiredInfo: mockRequiredInfo(),
         config: mockConfig(),
         expectedSource: "dataconnect",
-        expectedFiles: ["dataconnect/dataconnect.yaml", "dataconnect/schema/schema.gql"],
+        expectedFiles: ["dataconnect/dataconnect.yaml"],
         expectCSQLProvisioning: false,
       },
       {
@@ -47,7 +47,22 @@ describe("init dataconnect", () => {
         requiredInfo: mockRequiredInfo(),
         config: mockConfig({ dataconnect: { source: "not-dataconnect" } }),
         expectedSource: "not-dataconnect",
-        expectedFiles: ["not-dataconnect/dataconnect.yaml", "not-dataconnect/schema/schema.gql"],
+        expectedFiles: ["not-dataconnect/dataconnect.yaml"],
+        expectCSQLProvisioning: false,
+      },
+      {
+        desc: "should write schema files",
+        requiredInfo: mockRequiredInfo({
+          schemaGql: [
+            {
+              path: "schema.gql",
+              content: "## Fake GQL",
+            },
+          ],
+        }),
+        config: mockConfig({}),
+        expectedSource: "dataconnect",
+        expectedFiles: ["dataconnect/dataconnect.yaml", "dataconnect/schema/schema.gql"],
         expectCSQLProvisioning: false,
       },
       {
@@ -70,7 +85,6 @@ describe("init dataconnect", () => {
         expectedSource: "dataconnect",
         expectedFiles: [
           "dataconnect/dataconnect.yaml",
-          "dataconnect/schema/schema.gql",
           "dataconnect/hello/connector.yaml",
           "dataconnect/hello/queries.gql",
         ],
@@ -83,7 +97,7 @@ describe("init dataconnect", () => {
         }),
         config: mockConfig({}),
         expectedSource: "dataconnect",
-        expectedFiles: ["dataconnect/dataconnect.yaml", "dataconnect/schema/schema.gql"],
+        expectedFiles: ["dataconnect/dataconnect.yaml"],
         expectCSQLProvisioning: true,
       },
     ];
diff --git a/src/init/features/dataconnect/index.ts b/src/init/features/dataconnect/index.ts
index 56e48ffc2d9..d88d3a9024c 100644
--- a/src/init/features/dataconnect/index.ts
+++ b/src/init/features/dataconnect/index.ts
@@ -49,6 +49,12 @@ export interface RequiredInfo {
   shouldProvisionCSQL: boolean;
 }
 
+const emptyConnector = {
+  id: "default",
+  path: "./connector",
+  files: [],
+};
+
 const defaultConnector = {
   id: "default",
   path: "./connector",
@@ -64,6 +70,8 @@ const defaultConnector = {
   ],
 };
 
+const defaultSchema = { path: "schema.gql", content: SCHEMA_TEMPLATE };
+
 // doSetup is split into 2 phases - ask questions and then actuate files and API calls based on those answers.
 export async function doSetup(setup: Setup, config: Config): Promise<void> {
   const info = await askQuestions(setup);
@@ -77,8 +85,6 @@ export async function doSetup(setup: Setup, config: Config): Promise<void> {
       `If you'd like to add the generated SDK to your app your later, run ${clc.bold("firebase init dataconnect:sdk")}`,
     );
   }
-
-  logger.info("");
 }
 
 // askQuestions prompts the user about the Data Connect service they want to init. Any prompting
@@ -92,7 +98,7 @@ async function askQuestions(setup: Setup): Promise<RequiredInfo> {
     cloudSqlDatabase: "",
     isNewDatabase: false,
     connectors: [defaultConnector],
-    schemaGql: [],
+    schemaGql: [defaultSchema],
     shouldProvisionCSQL: false,
   };
   const isBillingEnabled = setup.projectId ? await checkBillingEnabled(setup.projectId) : false;
@@ -110,7 +116,9 @@ async function askQuestions(setup: Setup): Promise<RequiredInfo> {
     isBillingEnabled && requiredConfigUnset
       ? await confirm({
           message: `Would you like to configure your backend resources now?`,
-          default: false,
+          // For Blaze Projects, configure Cloud SQL by default.
+          // TODO: For Spark projects, allow them to configure Cloud SQL but deploy as unlinked Postgres.
+          default: true,
         })
       : false;
   if (shouldConfigureBackend) {
@@ -177,8 +185,6 @@ async function writeFiles(config: Config, info: RequiredInfo) {
     for (const f of info.schemaGql) {
       await config.askWriteProjectFile(join(dir, "schema", f.path), f.content);
     }
-  } else {
-    await config.askWriteProjectFile(join(dir, "schema", "schema.gql"), SCHEMA_TEMPLATE);
   }
   for (const c of info.connectors) {
     await writeConnectorFiles(config, c);
@@ -278,6 +284,9 @@ async function checkExistingInstances(
       const serviceName = parseServiceName(choice.service.name);
       info.serviceId = serviceName.serviceId;
       info.locationId = serviceName.location;
+      // If the existing service has no schema, don't override any gql files.
+      info.schemaGql = [];
+      info.connectors = [emptyConnector];
       if (choice.schema) {
         const primaryDatasource = choice.schema.datasources.find((d) => d.postgresql);
         if (primaryDatasource?.postgresql?.cloudSql.instance) {
@@ -286,7 +295,7 @@ async function checkExistingInstances(
           );
           info.cloudSqlInstanceId = instanceName.instanceId;
         }
-        if (choice.schema.source.files) {
+        if (choice.schema.source.files?.length) {
           info.schemaGql = choice.schema.source.files;
         }
         info.cloudSqlDatabase = primaryDatasource?.postgresql?.database ?? "";
diff --git a/src/init/features/dataconnect/sdk.spec.ts b/src/init/features/dataconnect/sdk.spec.ts
index 0fdd9a2ffc9..54dacae076b 100644
--- a/src/init/features/dataconnect/sdk.spec.ts
+++ b/src/init/features/dataconnect/sdk.spec.ts
@@ -32,22 +32,17 @@ describe("init dataconnect:sdk", () => {
       shouldGenerate: boolean;
     }[] = [
       {
-        desc: "should write files and generate code if shouldGenerate=true",
-        sdkInfo: mockSDKInfo(true),
+        desc: "should write files and generate code",
+        sdkInfo: mockSDKInfo(),
         shouldGenerate: true,
       },
-      {
-        desc: "should write files and not generate code if shouldGenerate=false",
-        sdkInfo: mockSDKInfo(false),
-        shouldGenerate: false,
-      },
     ];
 
     for (const c of cases) {
       it(c.desc, async () => {
         generateStub.resolves();
         fsStub.returns({});
-        await sdk.actuate(c.sdkInfo, "TEST_PROJECT");
+        await sdk.actuate(c.sdkInfo);
         expect(generateStub.called).to.equal(c.shouldGenerate);
         expect(fsStub.args).to.deep.equal([
           [
@@ -61,7 +56,7 @@ describe("init dataconnect:sdk", () => {
   });
 });
 
-function mockSDKInfo(shouldGenerate: boolean): sdk.SDKInfo {
+function mockSDKInfo(): sdk.SDKInfo {
   return {
     connectorYamlContents: CONNECTOR_YAML_CONTENTS,
     connectorInfo: {
@@ -74,7 +69,6 @@ function mockSDKInfo(shouldGenerate: boolean): sdk.SDKInfo {
         connectorId: "app",
       },
     },
-    shouldGenerate,
     displayIOSWarning: false,
   };
 }
diff --git a/src/init/features/dataconnect/sdk.ts b/src/init/features/dataconnect/sdk.ts
index 9b854b1c074..69eb0f51a99 100644
--- a/src/init/features/dataconnect/sdk.ts
+++ b/src/init/features/dataconnect/sdk.ts
@@ -29,14 +29,13 @@ export const FDC_APP_FOLDER = "_FDC_APP_FOLDER";
 export type SDKInfo = {
   connectorYamlContents: string;
   connectorInfo: ConnectorInfo;
-  shouldGenerate: boolean;
   displayIOSWarning: boolean;
 };
 export async function doSetup(setup: Setup, config: Config): Promise<void> {
   const sdkInfo = await askQuestions(setup, config);
-  await actuate(sdkInfo, setup.projectId);
+  await actuate(sdkInfo);
   logSuccess(
-    `If you'd like to generate additional SDKs later, run ${clc.bold("firebase init dataconnect:sdk")}`,
+    `If you'd like to add more generated SDKs to your app your later, run ${clc.bold("firebase init dataconnect:sdk")} again`,
   );
 }
 
@@ -190,30 +189,21 @@ async function askQuestions(setup: Setup, config: Config): Promise<SDKInfo> {
     newConnectorYaml.generate.kotlinSdk = kotlinSdk;
   }
 
-  const shouldGenerate = !!(
-    setup.projectId &&
-    (await confirm({
-      message: "Would you like to generate SDK code now?",
-      default: true,
-    }))
-  );
   // TODO: Prompt user about adding generated paths to .gitignore
   const connectorYamlContents = yaml.stringify(newConnectorYaml);
   connectorInfo.connectorYaml = newConnectorYaml;
-  return { connectorYamlContents, connectorInfo, shouldGenerate, displayIOSWarning };
+  return { connectorYamlContents, connectorInfo, displayIOSWarning };
 }
 
-export async function actuate(sdkInfo: SDKInfo, projectId?: string) {
+export async function actuate(sdkInfo: SDKInfo) {
   const connectorYamlPath = `${sdkInfo.connectorInfo.directory}/connector.yaml`;
   fs.writeFileSync(connectorYamlPath, sdkInfo.connectorYamlContents, "utf8");
   logBullet(`Wrote new config to ${connectorYamlPath}`);
-  if (projectId && sdkInfo.shouldGenerate) {
-    await DataConnectEmulator.generate({
-      configDir: sdkInfo.connectorInfo.directory,
-      connectorId: sdkInfo.connectorInfo.connectorYaml.connectorId,
-    });
-    logBullet(`Generated SDK code for ${sdkInfo.connectorInfo.connectorYaml.connectorId}`);
-  }
+  await DataConnectEmulator.generate({
+    configDir: sdkInfo.connectorInfo.directory,
+    connectorId: sdkInfo.connectorInfo.connectorYaml.connectorId,
+  });
+  logBullet(`Generated SDK code for ${sdkInfo.connectorInfo.connectorYaml.connectorId}`);
   if (sdkInfo.connectorInfo.connectorYaml.generate?.swiftSdk && sdkInfo.displayIOSWarning) {
     logBullet(
       clc.bold(