A computerized method, program product, and a service that allocates and isolates leaky memory during the execution of an application in a data processing system. A memory controller having several components first identifies a leaky section of memory and delegates to an allocation component to allocate more memory if possible. If, however, the problematic memory section should not be allocated more memory, an isolator component can isolate the memory section and further divide the memory section into subsections and so on. Each section and each subsection may then be tested to determine if more memory can be allocated, tested to determine if memory resources are strained so as to identify the application or its component causing the strain and then binding the memory. Each section and subsection and further divided and isolated until the leaky portion of memory is identified, and as a result, the software component causing the leak can also be identified. The software component associated with the leaky memory section or subsection can also be taken out-of-service.