The Java VM is running out of memory rather than your PC.   # There is insufficient memory for the Java Runtime Environment to continue. # Native memory allocation (malloc) failed to allocate 1611608 bytes. Error detail: Chunk::new   Try this, open \steamapps\common\ProjectZomboid\ProjectZomboid64.json in a text editor.   Look for:  Xmx3072m and change it to: Xmx4096m   Then try running the game again.  

It's weird because it doesn't look like I'm running out of memory. I also don't use any mods.

It has been a while since we last looked at this, can you share your logs.zip file again so I have the most up to date info?

If the VPS only has 8gb of RAM you will need to lower the RAM allocated to the server to allow OS overhead. Can you try setting it to 6g?

The error is showing that you're out of memory. Are you using mods?