Dave Bland shows how you can create a new database using Azure Data Studio:
Regardless of what tool we are using, SQL Server Management Studio or Azure Data Studio, the need to create new databases is always present. Using Transact SQL is an option in both tools. What is not an option in both tools is to right click and to go “New Database”. This has been in SSMS for many years, however it is NOT present in Azure Data Studio.
If you really do want to create a new database using a GUI in Azure Data Studio, Dave shows you the extension you need. It’s not as fully-featured as the wizard in Management Studio, so it would make sense to understand what that wizard is doing and learn the T-SQL yourself.