Step-By-Step: Setting up Active Directory in Windows Server 2016

Install windows server operating system
Recommended to set static IP address and DNS
Login to the server, and click on the Start button, and then click on Server Manager (or) Go to PowerShell (as administrator) and type ServerManager.exe and press enter.

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On the Server Manager Dashboard, click on Add roles and features:
The Add role and features wizard will come up:
Click on Next. On the following Installation type screen, choose the first option “Role-based or feature-based installation:
Click on Next. On the following screen select a server from the server pool. your local server should be listed:
On the following screen click on Active Directory Domain Services and the Add features window will pop-up:

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Click on Add Features and then click on Next. Make sure .NET 4.6 Features are checked on the following screen:
Then click on Next. On the following screen you will get a short overview of what a domain controller does, and the services that get installed. if this is your first domain controller you will be prompted to install the DNS service which is required on a domain controller:
Click on Next. click on Install on the confirmation window:
The Installation will begin:
Setup Domain Controller

Once the AD role has been installed. click on Promote this server to a domain controller:
And the deployment configuration wizard will come up. Select Add new forest and choose your Root domain name:
click on Next. on the next screen choose your Forest functional level and enter the Directory Service Restore Mode password: If this is your first domain controller choose “Windows Server 2016” as the Forest and Domain functional level. make sure the DNS option is checked, and because this is my first server, the Global Catalog ( GC) is already checked. click on Next:
For the DNS options, this going to be the first DNS server in new forest. So no need any modifications. Click next to proceed.
Choose the NetBIOS domain name (already selected ) and click Next choose the paths for the the AD database, normally the defaults are OK
Next page is to define the NTDS, SYSVOL and LOG file folders. You can keep default or define different path for these. In demo I will be keeping default. Once changes are done, click next to continue
Review Options:
In next windows it will do prerequisite check. If it’s all good it will enable option to install. Click on install to begin installation process.
The Installation should begin. the server will reboot automatically when the installation finishes:
This message will pop-up on your screen when Windows Server 2016 is about reboot: