I have installed docker in a fresh Windows Server 2016 VM using PS command:
Install-Package -Name docker -ProviderName DockerMsftProvider -Force
After installation when I start docker service, HNS service will start using 50 % of my RAM. Note that on my first test I had 8GB of RAM assigned to my VM, later I have resized it to have 16GB of RAM and again the HNS service will use 50 % of total memory (only when docker service is started).
Another interesting thing that is happening is that if I stop the docker service the HNS service will keep using 50% of my RAM, only restarting the VM with docker service stopped will the memory be released.
I have created a new VM, this time with Windows Server 2016 Datacenter (previous was Standard), and I am not seeing this problem any more.