output esm module syntax in server code with webpack 5

I have the following webpack 5 configuration for transpiling server code which I want to transpile to esm syntax and not commonjs:

const config: Configuration = merge(common, overrides, {
  name: 'server',
  target: 'node',
  experiments: {
    outputModule: true,
    topLevelAwait: true,
  },
  output: {
    path: paths.appBuild,
    filename: options.filename,
    publicPath,
    library: {
      type: 'module',
    },
    chunkFormat: 'module',
    environment: {
      const: true,
      destructuring: true,
      forOf: true,
      module: true,
      templateLiteral: true,
    },
  },

I have set "type": "module" in the package.json file.

My tsconfig.json has these compilerOptions:

  "compilerOptions": {
    "baseUrl": ".",
    "target": "ESNext",
    "module": "ESNext",

But when I look at the output, it still has require statements:

const svg_namespaceObject = require("@cutting/svg");