He didn't die but his spirit was weakened to the point he couldn't take a form or even interact with the spiritual or physical realms. Like he could see what was happening around him but could do nothing, could not influence anything, touch anything, nothing . Could view it but not interact in anyway with it. For a being like sauron this was worse than death. His unyielding desire for control of all things and perfect order by force and now he cannot force his ideas, will or influence on anything. This would be Neverending torture and torment for him. So basically he was punished and tortured for eternity. Edit I typed this out at the start of this video and what I explained is almost the same as the video.
![The History of Sauron [COMPILATION] | Tolkien Explained](http://i.ytimg.com/vi/8IqAN1Of70k/mqdefault.jpg)
![“อ.เบียร์ คนตื่นธรรม” มาตามคำเรียกร้อง แหกศาสตร์ฮวงจุ้ย เตือนสติอย่างมงาย | แฉ 7 พ.ย. 67 [1/3]](http://i.ytimg.com/vi/5fc4S3xBNfc/mqdefault.jpg)
He didn't die but his spirit was weakened to the point he couldn't take a form or even interact with the spiritual or physical realms. Like he could see what was happening around him but could do nothing, could not influence anything, touch anything, nothing . Could view it but not interact in anyway with it. For a being like sauron this was worse than death. His unyielding desire for control of all things and perfect order by force and now he cannot force his ideas, will or influence on anything. This would be Neverending torture and torment for him. So basically he was punished and tortured for eternity.
Edit I typed this out at the start of this video and what I explained is almost the same as the video.
E. R. U. Illuvatar