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Groovy creates classes dynamically, but the default Java VM does not GC the PermGen. If you are using Java 6 or later, add -XX:+CMSClassUnloadingEnabled -XX:+UseConcMarkSweepGC. UseConcMarkSweepGC is needed to enable CMSClassUnloadingEnabled.

Groovy and the Cloud

Groovy can run anywhere the JVM runs - including many cloud platforms, likewise, continuous integration is just as easy. You can kick the tyres at CloudBees for hosting your groovy app, this quick start will get you going (with the correct settings and permgen):

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This will setup a CI job (running tests and build, in Jenkins) and deploy the "pet store" app that uses the grails "pet store" demo app (you can use it for free). Prefer to set it up yourself, read here for details.