In order to allocate more RAM to your Minecraft server, first select your Instance and double-click to Manage:
From there, navigate to the Configuration section:
Then, navigate to the Minecraft section on the left sidebar and select Java and Memory on the top bar. You can change the Memory Limit (MB) here:
NOTES:
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The default value for Memory Limit (MB) is 3686 MB
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You can’t set up more memory than your plan provides
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We recommend saving at least 512 MB out of the provided RAM in order to prevent server crashes and instabilities.
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For example, if your VPS has 2 GB of RAM, the maximum setting for Memory Limit should be 1536 MB). In case you need more memory – consider an upgrade