diff --git a/BTCPayServer/Data/ApplicationDbContextFactory.cs b/BTCPayServer/Data/ApplicationDbContextFactory.cs
index 8e6171d49..1571a34ad 100644
--- a/BTCPayServer/Data/ApplicationDbContextFactory.cs
+++ b/BTCPayServer/Data/ApplicationDbContextFactory.cs
@@ -6,6 +6,11 @@ using System.Threading.Tasks;
 using Hangfire;
 using Hangfire.MemoryStorage;
 using Hangfire.PostgreSql;
+using Microsoft.EntityFrameworkCore.Migrations;
+using Npgsql.EntityFrameworkCore.PostgreSQL.Migrations;
+using JetBrains.Annotations;
+using Npgsql.EntityFrameworkCore.PostgreSQL.Migrations.Operations;
+using Microsoft.EntityFrameworkCore.Metadata;
 
 namespace BTCPayServer.Data
 {
@@ -31,12 +36,56 @@ namespace BTCPayServer.Data
             return new ApplicationDbContext(builder.Options);
         }
 
+        class CustomNpgsqlMigrationsSqlGenerator : NpgsqlMigrationsSqlGenerator
+        {
+            public CustomNpgsqlMigrationsSqlGenerator(MigrationsSqlGeneratorDependencies dependencies) : base(dependencies)
+            {
+            }
+
+            protected override void Generate(NpgsqlCreateDatabaseOperation operation, IModel model, MigrationCommandListBuilder builder)
+            {
+                builder
+                     .Append("CREATE DATABASE ")
+                     .Append(Dependencies.SqlGenerationHelper.DelimitIdentifier(operation.Name));
+
+                // POSTGRES gotcha: Indexed Text column (even if PK) are not used if we are not using C locale
+                builder
+                    .Append(" TEMPLATE ")
+                    .Append(Dependencies.SqlGenerationHelper.DelimitIdentifier("template0"));
+
+                builder
+                    .Append(" LC_CTYPE ")
+                    .Append(Dependencies.SqlGenerationHelper.DelimitIdentifier("C"));
+
+                builder
+                    .Append(" LC_COLLATE ")
+                    .Append(Dependencies.SqlGenerationHelper.DelimitIdentifier("C"));
+
+                builder
+                    .Append(" ENCODING ")
+                    .Append(Dependencies.SqlGenerationHelper.DelimitIdentifier("UTF8"));
+
+                if (operation.Tablespace != null)
+                {
+                    builder
+                        .Append(" TABLESPACE ")
+                        .Append(Dependencies.SqlGenerationHelper.DelimitIdentifier(operation.Tablespace));
+                }
+
+                builder.AppendLine(Dependencies.SqlGenerationHelper.StatementTerminator);
+
+                EndStatement(builder, suppressTransaction: true);
+            }
+        }
+
         public void ConfigureBuilder(DbContextOptionsBuilder builder)
         {
             if (_Type == DatabaseType.Sqlite)
                 builder.UseSqlite(_ConnectionString);
             else if (_Type == DatabaseType.Postgres)
-                builder.UseNpgsql(_ConnectionString);
+                builder
+                    .UseNpgsql(_ConnectionString)
+                    .ReplaceService<IMigrationsSqlGenerator, CustomNpgsqlMigrationsSqlGenerator>();
         }
 
         public void ConfigureHangfireBuilder(IGlobalConfiguration builder)