Getting a "There is not enough storage to run this request" while running a report in TOAD.

Oracle 11 g
Linux.

Running a large report in TOAD, on Windows. It gets about1.2 Mil records and gives me a message that it cannot complete the request.
"There is not enough Storage to complete the Request"

Is TOAD using local storage to process records? On the client PC?
Or is it the storage on the server?

If it using space on the server which storage space?

Thank you