diff --git a/src/config.ts b/src/config.ts
index 9c23d2d84ae..75fedee9bbc 100644
--- a/src/config.ts
+++ b/src/config.ts
@@ -229,7 +229,7 @@ export class Config {
     fs.removeSync(this.path(p));
   }
 
-  askWriteProjectFile(p: string, content: any, force?: boolean) {
+  askWriteProjectFile(p: string, content: any, force?: boolean, confirmByDefault?: boolean) {
     const writeTo = this.path(p);
     let next;
     if (typeof content !== "string") {
@@ -243,7 +243,7 @@ export class Config {
       next = promptOnce({
         type: "confirm",
         message: "File " + clc.underline(p) + " already exists. Overwrite?",
-        default: false,
+        default: !!confirmByDefault,
       });
     } else {
       next = Promise.resolve(true);
diff --git a/src/dataconnect/freeTrial.ts b/src/dataconnect/freeTrial.ts
index 7925beeecc1..c4d3841defb 100644
--- a/src/dataconnect/freeTrial.ts
+++ b/src/dataconnect/freeTrial.ts
@@ -65,3 +65,11 @@ export function printFreeTrialUnavailable(
     `Alternatively, you may create a new (paid) CloudSQL instance at https://console.cloud.google.com/sql/instances`,
   );
 }
+
+export function upgradeInstructions(projectId: string): string {
+  return `If you'd like to provision a CloudSQL Postgres instance on the Firebase Data Connect no-cost trial:
+1. Please upgrade to the pay-as-you-go (Blaze) billing plan. Visit the following page:
+     https://console.firebase.google.com/project/${projectId}/usage/details
+2. Run ${clc.bold("firebase init dataconnect")} again to configure the Cloud SQL instance.
+3. Run ${clc.bold("firebase deploy --only dataconnect")} to deploy your Data Connect service.`;
+}
diff --git a/src/deploy/dataconnect/prepare.ts b/src/deploy/dataconnect/prepare.ts
index 637fb29026e..42e357b2e99 100644
--- a/src/deploy/dataconnect/prepare.ts
+++ b/src/deploy/dataconnect/prepare.ts
@@ -12,11 +12,13 @@ import { ensureApis } from "../../dataconnect/ensureApis";
 import { requireTosAcceptance } from "../../requireTosAcceptance";
 import { DATA_CONNECT_TOS_ID } from "../../gcp/firedata";
 import { provisionCloudSql } from "../../dataconnect/provisionCloudSql";
+import { checkBillingEnabled } from "../../gcp/cloudbilling";
 import { parseServiceName } from "../../dataconnect/names";
 import { FirebaseError } from "../../error";
 import { requiresVector } from "../../dataconnect/types";
 import { diffSchema } from "../../dataconnect/schemaMigration";
 import { join } from "node:path";
+import { upgradeInstructions } from "../../dataconnect/freeTrial";
 
 /**
  * Prepares for a Firebase DataConnect deployment by loading schemas and connectors from file.
@@ -25,6 +27,9 @@ import { join } from "node:path";
  */
 export default async function (context: any, options: DeployOptions): Promise<void> {
   const projectId = needProjectId(options);
+  if (!(await checkBillingEnabled(projectId))) {
+    throw new FirebaseError(upgradeInstructions(projectId));
+  }
   await ensureApis(projectId);
   await requireTosAcceptance(DATA_CONNECT_TOS_ID)(options);
   const serviceCfgs = readFirebaseJson(options.config);
diff --git a/src/init/features/dataconnect/index.ts b/src/init/features/dataconnect/index.ts
index d88d3a9024c..c7369cb677c 100644
--- a/src/init/features/dataconnect/index.ts
+++ b/src/init/features/dataconnect/index.ts
@@ -5,7 +5,7 @@ import { confirm, promptOnce } from "../../../prompt";
 import { Config } from "../../../config";
 import { Setup } from "../..";
 import { provisionCloudSql } from "../../../dataconnect/provisionCloudSql";
-import { checkFreeTrialInstanceUsed } from "../../../dataconnect/freeTrial";
+import { checkFreeTrialInstanceUsed, upgradeInstructions } from "../../../dataconnect/freeTrial";
 import * as cloudsql from "../../../gcp/cloudsql/cloudsqladmin";
 import { ensureApis, ensureSparkApis } from "../../../dataconnect/ensureApis";
 import * as experiments from "../../../experiments";
@@ -19,7 +19,7 @@ import { Schema, Service, File, Platform } from "../../../dataconnect/types";
 import { parseCloudSQLInstanceName, parseServiceName } from "../../../dataconnect/names";
 import { logger } from "../../../logger";
 import { readTemplateSync } from "../../../templates";
-import { logBullet, logSuccess } from "../../../utils";
+import { logBullet } from "../../../utils";
 import { checkBillingEnabled } from "../../../gcp/cloudbilling";
 import * as sdk from "./sdk";
 import { getPlatformFromFolder } from "../../../dataconnect/fileUtils";
@@ -74,7 +74,11 @@ 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);
+  const isBillingEnabled = setup.projectId ? await checkBillingEnabled(setup.projectId) : false;
+  if (setup.projectId) {
+    isBillingEnabled ? await ensureApis(setup.projectId) : await ensureSparkApis(setup.projectId);
+  }
+  const info = await askQuestions(setup, isBillingEnabled);
   await actuate(setup, config, info);
 
   const cwdPlatformGuess = await getPlatformFromFolder(process.cwd());
@@ -82,14 +86,17 @@ export async function doSetup(setup: Setup, config: Config): Promise<void> {
     await sdk.doSetup(setup, config);
   } else {
     logBullet(
-      `If you'd like to add the generated SDK to your app your later, run ${clc.bold("firebase init dataconnect:sdk")}`,
+      `If you'd like to add the generated SDK to your app your, run ${clc.bold("firebase init dataconnect:sdk")}`,
     );
   }
+  if (setup.projectId && !isBillingEnabled) {
+    logBullet(upgradeInstructions(setup.projectId));
+  }
 }
 
 // askQuestions prompts the user about the Data Connect service they want to init. Any prompting
 // logic should live here, and _no_ actuation logic should live here.
-async function askQuestions(setup: Setup): Promise<RequiredInfo> {
+async function askQuestions(setup: Setup, isBillingEnabled: boolean): Promise<RequiredInfo> {
   let info: RequiredInfo = {
     serviceId: "",
     locationId: "",
@@ -101,11 +108,8 @@ async function askQuestions(setup: Setup): Promise<RequiredInfo> {
     schemaGql: [defaultSchema],
     shouldProvisionCSQL: false,
   };
-  const isBillingEnabled = setup.projectId ? await checkBillingEnabled(setup.projectId) : false;
-  if (setup.projectId) {
-    isBillingEnabled ? await ensureApis(setup.projectId) : await ensureSparkApis(setup.projectId);
-  }
-  info = await checkExistingInstances(setup, info, isBillingEnabled);
+  // Query backend and pick up any existing services quickly.
+  info = await promptForExistingServices(setup, info, isBillingEnabled);
 
   const requiredConfigUnset =
     info.serviceId === "" ||
@@ -123,8 +127,7 @@ async function askQuestions(setup: Setup): Promise<RequiredInfo> {
       : false;
   if (shouldConfigureBackend) {
     info = await promptForService(info);
-    info = await promptForCloudSQLInstance(setup, info);
-    info = await promptForDatabase(info);
+    info = await promptForCloudSQL(setup, info);
 
     info.shouldProvisionCSQL = !!(
       setup.projectId &&
@@ -136,16 +139,10 @@ async function askQuestions(setup: Setup): Promise<RequiredInfo> {
       }))
     );
   } else {
-    if (requiredConfigUnset) {
-      logBullet(
-        `Setting placeholder values in dataconnect.yaml. You can edit these before you deploy to specify different IDs or regions.`,
-      );
-    }
-    info.serviceId = info.serviceId !== "" ? info.serviceId : basename(process.cwd());
-    info.cloudSqlInstanceId =
-      info.cloudSqlInstanceId !== "" ? info.cloudSqlInstanceId : `${info.serviceId || "app"}-fdc`;
-    info.locationId = info.locationId !== "" ? info.locationId : `us-central1`;
-    info.cloudSqlDatabase = info.cloudSqlDatabase !== "" ? info.cloudSqlDatabase : `fdcdb`;
+    info.serviceId = info.serviceId || basename(process.cwd());
+    info.cloudSqlInstanceId = info.cloudSqlInstanceId || `${info.serviceId || "app"}-fdc`;
+    info.locationId = info.locationId || `us-central1`;
+    info.cloudSqlDatabase = info.cloudSqlDatabase || `fdcdb`;
   }
   return info;
 }
@@ -176,12 +173,16 @@ async function writeFiles(config: Config, info: RequiredInfo) {
   });
 
   config.set("dataconnect", { source: dir });
-  await config.askWriteProjectFile(join(dir, "dataconnect.yaml"), subbedDataconnectYaml);
+  await config.askWriteProjectFile(
+    join(dir, "dataconnect.yaml"),
+    subbedDataconnectYaml,
+    false,
+    // Default to override dataconnect.yaml
+    // Sole purpose of `firebase init dataconnect` is to update `dataconnect.yaml`.
+    true,
+  );
 
   if (info.schemaGql.length) {
-    logSuccess(
-      "The service you chose already has GQL files deployed. We'll use those instead of the default templates.",
-    );
     for (const f of info.schemaGql) {
       await config.askWriteProjectFile(join(dir, "schema", f.path), f.content);
     }
@@ -244,7 +245,7 @@ function subConnectorYamlValues(replacementValues: { connectorId: string }): str
   return replaced;
 }
 
-async function checkExistingInstances(
+async function promptForExistingServices(
   setup: Setup,
   info: RequiredInfo,
   isBillingEnabled: boolean,
@@ -314,13 +315,14 @@ async function checkExistingInstances(
           });
         }
       }
-    } else {
-      info = await promptForService(info);
     }
   }
+  return info;
+}
 
+async function promptForCloudSQL(setup: Setup, info: RequiredInfo): Promise<RequiredInfo> {
   // Check for existing Cloud SQL instances, if we didn't already set one.
-  if (info.cloudSqlInstanceId === "") {
+  if (info.cloudSqlInstanceId === "" && setup.projectId) {
     const instances = await cloudsql.listInstances(setup.projectId);
     let choices = instances.map((i) => {
       let display = `${i.name} (${i.region})`;
@@ -343,14 +345,31 @@ async function checkExistingInstances(
       if (info.cloudSqlInstanceId !== "") {
         // Infer location if a CloudSQL instance is chosen.
         info.locationId = choices.find((c) => c.value === info.cloudSqlInstanceId)!.location;
-      } else {
-        info = await promptForCloudSQLInstance(setup, info);
       }
     }
   }
 
-  // Check for existing Cloud SQL databases, if we didn't already set one.
-  if (info.cloudSqlDatabase === "" && info.cloudSqlInstanceId !== "") {
+  // No existing instance found or choose to create new instance.
+  if (info.cloudSqlInstanceId === "") {
+    info.isNewInstance = true;
+    info.cloudSqlInstanceId = await promptOnce({
+      message: `What ID would you like to use for your new CloudSQL instance?`,
+      type: "input",
+      default: `${info.serviceId || "app"}-fdc`,
+    });
+  }
+  if (info.locationId === "") {
+    const choices = await locationChoices(setup);
+    info.locationId = await promptOnce({
+      message: "What location would like to use?",
+      type: "list",
+      choices,
+    });
+  }
+
+  // Look for existing databases within the picked instance.
+  // Best effort since the picked `info.cloudSqlInstanceId` may not exists or is still being provisioned.
+  if (info.cloudSqlDatabase === "" && setup.projectId) {
     try {
       const dbs = await cloudsql.listDatabases(setup.projectId, info.cloudSqlInstanceId);
       const choices = dbs.map((d) => {
@@ -363,9 +382,6 @@ async function checkExistingInstances(
           type: "list",
           choices,
         });
-        if (info.cloudSqlDatabase === "") {
-          info = await promptForDatabase(info);
-        }
       }
     } catch (err) {
       // Show existing databases in a list is optional, ignore any errors from ListDatabases.
@@ -373,6 +389,17 @@ async function checkExistingInstances(
       logger.debug(`[dataconnect] Cannot list databases during init: ${err}`);
     }
   }
+
+  // No existing database found or cannot access the instance.
+  // Prompt for a name.
+  if (info.cloudSqlDatabase === "") {
+    info.isNewDatabase = true;
+    info.cloudSqlDatabase = await promptOnce({
+      message: `What ID would you like to use for your new database in ${info.cloudSqlInstanceId}?`,
+      type: "input",
+      default: `fdcdb`,
+    });
+  }
   return info;
 }
 
@@ -387,26 +414,6 @@ async function promptForService(info: RequiredInfo): Promise<RequiredInfo> {
   return info;
 }
 
-async function promptForCloudSQLInstance(setup: Setup, info: RequiredInfo): Promise<RequiredInfo> {
-  if (info.cloudSqlInstanceId === "") {
-    info.isNewInstance = true;
-    info.cloudSqlInstanceId = await promptOnce({
-      message: `What ID would you like to use for your new CloudSQL instance?`,
-      type: "input",
-      default: `${info.serviceId || "app"}-fdc`,
-    });
-  }
-  if (info.locationId === "") {
-    const choices = await locationChoices(setup);
-    info.locationId = await promptOnce({
-      message: "What location would like to use?",
-      type: "list",
-      choices,
-    });
-  }
-  return info;
-}
-
 async function locationChoices(setup: Setup) {
   if (setup.projectId) {
     const locations = await listLocations(setup.projectId);
@@ -427,15 +434,3 @@ async function locationChoices(setup: Setup) {
     ];
   }
 }
-
-async function promptForDatabase(info: RequiredInfo): Promise<RequiredInfo> {
-  if (info.cloudSqlDatabase === "") {
-    info.isNewDatabase = true;
-    info.cloudSqlDatabase = await promptOnce({
-      message: `What ID would you like to use for your new database in ${info.cloudSqlInstanceId}?`,
-      type: "input",
-      default: `fdcdb`,
-    });
-  }
-  return info;
-}