docker-compose for nginx and nodejs server

I have the following docker-compose.yml file:

version: '3'
services:
    server:
        build:
            context: ../../
            dockerfile: ./packages/website/Dockerfile
        command: node /cutting/index.js
        environment:
            PORT: 8000
            NODE_ENV: production
        restart: always
    nginx:
        build:
            context: ./
            dockerfile: ./nginx/Dockerfile
        command: tail -f /dev/null
        depends_on:
            - server
        ports:
            - "8000:8000"
        restart: always

And the following nginx.conf:

worker_processes 1;

user nobody nogroup;
pid /tmp/nginx.pid;
error_log /tmp/logs/nginx.error.log;

events {
    worker_connections 1024;
    accept_mutex off;
}

http {
    include mime.types;
    default_type application/octet-stream;
    access_log /tmp/logs/nginx.access.log combined;
    sendfile on;

    server {
        proxy_http_version 1.1; # this is essential for chunked responses to work

        listen   80; ## listen for ipv4; this line is default and implied
        listen   [::]:80 default ipv6only=on; ## listen for ipv6
        client_max_body_size 4G;
        server_name frontend;

        gzip on;
        gzip_disable "msie6";
        gzip_vary on;
        gzip_proxied any;
        gzip_comp_level 6;
        gzip_buffers 16 8k;
        gzip_http_version 1.1;
        gzip_types application/javascript text/plain text/css application/json application/x-javascript text/xml application/xml application/xml+rss text/javascript;

        keepalive_timeout 5;

        location /static/  {
            alias /static/;
        }

        location  / {
            proxy_set_header X-Forwarded-For $proxy_add_x_forwarded_for;
            proxy_set_header Host $http_host;

            # UNCOMMENT LINE BELOW IF THIS IS BEHIND A SSL PROXY
            #proxy_set_header X-Forwarded-Proto https;

            proxy_redirect off;
            proxy_pass   http://localhost:8000;
        }
    }
}

If this creates 2 containers how can I get nginx to see the localhost:8000 on the other container?

You use the container's name as you defined it in docker-compose.yml. Docker provides the IP addresses for the named containers via DNS within each container, and updates them if the containers are updated.

In this case, you called it server, so that is what you would use.

    proxy_pass http://server:8000;

Documentation: Networking in Compose

In this case, you need to use upstream like:

upstream backend {
    server express-server:81; #you container/service name
}

and then use:

proxy_pass http://backend