Google has released a beta of AppEngine for Java. "With App Engine, you can build web applications using standard Java technologies and run them on Google's scalable infrastructure. The Java environment provides a Java 6 JVM, a Java Servlets interface, and support for standard interfaces to the App Engine scalable datastore and services, such as JDO, JPA, JavaMail, and JCache.":
App Engine uses the Java Servlet standard for web applications. You provide your app's servlet classes, JavaServer Pages (JSPs), static files and data files, along with the deployment descriptor (the web.xml file) and other configuration files, in a standard WAR directory structure. App Engine serves requests by invoking servlets according to the deployment descriptor.
The JVM runs in a secured "sandbox" environment to isolate your application for service and security. The sandbox ensures that apps can only perform actions that do not interfere with the performance and scalability of other apps. For instance, an app cannot spawn threads, write data to the local file system or make arbitrary network connections. An app also cannot use JNI or other native code. The JVM can execute any Java bytecode that operates within the sandbox restrictions.
I also just noticed that Google turned on billing while I wasn't looking, so it's now possible to pay for additional quota (CPU, bandwidth in/out, storage, and e-mail) if the initial free allotment doesn't suffice.