The main aim of the current paper is to demonstrate the capability of a two-phase closed thermosyphon loop system to cool down a contemporary datacenter rack, passively cooling the entire rack, including its numerous servers. The effects on the cooling loop performance with respect to the server orientation, microevaporator design, riser and downcomer diameters, working fluid, and approach temperature at the condenser have been modeled and simulated. The influence of the thermosyphon height (here from 5-20 cm with a horizontally or vertically oriented server) on the driving force that guarantees the system operation while simultaneously fulfilling the critical heat flux (CHF) criterion also has been examined. In summary, the thermosyphon height was found to be the most significant design parameter. For the conditions simulated, in terms of CHF, the 10-cm-high thermosyphon was the most advantageous system design with a minimum safety factor of 1.6 relative to the imposed heat flux of 80 Wcm −2. Additionally, a case study including an overhead water-cooled heat exchanger to extract heat from the thermosyphon loop has been developed, and then the entire rack cooling system has been evaluated in terms of cost savings, payback period, and net benefit per year. This approximate study provides a general understanding of how the datacenter cooling infrastructure directly impacts the operating budget as well as influencing the thermal/hydraulic operation, performance, and reliability of the datacenter. Finally, the study shows that the passive two-phase closed-loop thermosyphon cooling system is a potentially economically sound technology to cool high-heat-flux servers of datacenters.