Terraria First Time Setup Guide
Stop your Game Server
#1 Enable the autocreation by removing the leading HashTag(#)
#2 SAVE and Restart your server and the generation will start, it takes around 3 minutes for a Large world.
#3 Return in the serverconfig.txt file and disable the autocreation by adding the hashtag(#)
#4 Using the file editor, locate the new generated world it should be in the folder gamehosting_saves\ModLoader\Worlds\World.wld.
Then, edit the serverconfig.txt to set the world it have to load and remove the leading hashtag(#)
Restart your Server.