Dear mikycol,
Perhaps the issue is not the availability of memory, but the availability of one, contiguous block of memory. You could have plenty of free memory and still not be able to allocation 2GB as one block.
Instead, could you try -Xmx2048m -Xms2048m. This forces the JVM to get all memory in one go and perhaps the hypervisor will allocate it as one block.
Kees Jan
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