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java callout error

We have one java callout which is generating jwt token in loop
lets say we have 200 objects in a response array, and for each object we are traversing via 3 for loops to add a custom jwt token.

while performing load testing 
one request which is returning more than 2MB response being hit multiple times  getting errored out with below error

Failed to execute JavaCallout. Java heap space

And again its giving response in next hit without any change 

can I know how this java callout works with ApigeeX architecture, where does heap memory getting created for java callouts  and how to increase  @dchiesa1 

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