diff --git a/packages/next/plugin.ts b/packages/next/plugin.ts
index df1726b40d377..6b5429d3cfd6e 100644
--- a/packages/next/plugin.ts
+++ b/packages/next/plugin.ts
@@ -1 +1,5 @@
-export { createNodes, NextPluginOptions } from './src/plugins/plugin';
+export {
+  createNodes,
+  createNodesV2,
+  NextPluginOptions,
+} from './src/plugins/plugin';
diff --git a/packages/next/src/generators/convert-to-inferred/convert-to-inferred.ts b/packages/next/src/generators/convert-to-inferred/convert-to-inferred.ts
index a01338f37898a..f8834f799d583 100644
--- a/packages/next/src/generators/convert-to-inferred/convert-to-inferred.ts
+++ b/packages/next/src/generators/convert-to-inferred/convert-to-inferred.ts
@@ -1,10 +1,10 @@
 import { createProjectGraphAsync, formatFiles, Tree } from '@nx/devkit';
 import { AggregatedLog } from '@nx/devkit/src/generators/plugin-migrations/aggregate-log-util';
 import {
-  migrateProjectExecutorsToPluginV1,
+  migrateProjectExecutorsToPlugin,
   NoTargetsToMigrateError,
 } from '@nx/devkit/src/generators/plugin-migrations/executor-to-plugin-migrator';
-import { createNodes } from '../../plugins/plugin';
+import { createNodesV2 } from '../../plugins/plugin';
 import { buildPostTargetTransformer } from './lib/build-post-target-transformer';
 import { servePosTargetTransformer } from './lib/serve-post-target-tranformer';
 
@@ -17,11 +17,11 @@ export async function convertToInferred(tree: Tree, options: Schema) {
   const projectGraph = await createProjectGraphAsync();
   const migrationLogs = new AggregatedLog();
 
-  const migratedProjects = await migrateProjectExecutorsToPluginV1(
+  const migratedProjects = await migrateProjectExecutorsToPlugin(
     tree,
     projectGraph,
     '@nx/next/plugin',
-    createNodes,
+    createNodesV2,
     {
       buildTargetName: 'build',
       devTargetName: 'dev',
diff --git a/packages/next/src/generators/init/init.ts b/packages/next/src/generators/init/init.ts
index adea0c246ca0b..b4796f64b0655 100644
--- a/packages/next/src/generators/init/init.ts
+++ b/packages/next/src/generators/init/init.ts
@@ -7,7 +7,7 @@ import {
   readNxJson,
   createProjectGraphAsync,
 } from '@nx/devkit';
-import { addPluginV1 } from '@nx/devkit/src/utils/add-plugin';
+import { addPlugin } from '@nx/devkit/src/utils/add-plugin';
 import { assertNotUsingTsSolutionSetup } from '@nx/js/src/utils/typescript/ts-solution-setup';
 import { reactDomVersion, reactVersion } from '@nx/react/src/utils/versions';
 import { addGitIgnoreEntry } from '../../utils/add-gitignore-entry';
@@ -55,12 +55,12 @@ export async function nextInitGeneratorInternal(
 
   schema.addPlugin ??= addPluginDefault;
   if (schema.addPlugin) {
-    const { createNodes } = await import('../../plugins/plugin');
-    await addPluginV1(
+    const { createNodesV2 } = await import('../../plugins/plugin');
+    await addPlugin(
       host,
       await createProjectGraphAsync(),
       '@nx/next/plugin',
-      createNodes,
+      createNodesV2,
       {
         startTargetName: ['start', 'next:start', 'next-start'],
         buildTargetName: ['build', 'next:build', 'next-build'],
diff --git a/packages/next/src/plugins/__snapshots__/plugin.spec.ts.snap b/packages/next/src/plugins/__snapshots__/plugin.spec.ts.snap
index 38052c0234116..6224c2bbdf1c1 100644
--- a/packages/next/src/plugins/__snapshots__/plugin.spec.ts.snap
+++ b/packages/next/src/plugins/__snapshots__/plugin.spec.ts.snap
@@ -1,121 +1,131 @@
 // Jest Snapshot v1, https://goo.gl/fbAQLP
 
 exports[`@nx/next/plugin integrated projects should create nodes 1`] = `
-{
-  "projects": {
-    "my-app": {
-      "root": "my-app",
-      "targets": {
-        "my-build": {
-          "cache": true,
-          "command": "next build",
-          "dependsOn": [
-            "^build",
-          ],
-          "inputs": [
-            "default",
-            "^production",
-            {
-              "externalDependencies": [
-                "next",
+[
+  [
+    "my-app/next.config.js",
+    {
+      "projects": {
+        "my-app": {
+          "root": "my-app",
+          "targets": {
+            "my-build": {
+              "cache": true,
+              "command": "next build",
+              "dependsOn": [
+                "^build",
+              ],
+              "inputs": [
+                "default",
+                "^production",
+                {
+                  "externalDependencies": [
+                    "next",
+                  ],
+                },
+              ],
+              "options": {
+                "cwd": "my-app",
+                "tty": false,
+              },
+              "outputs": [
+                "{workspaceRoot}/my-app/.next",
+                "{workspaceRoot}/my-app/.next/!(cache)",
               ],
             },
-          ],
-          "options": {
-            "cwd": "my-app",
-            "tty": false,
-          },
-          "outputs": [
-            "{workspaceRoot}/my-app/.next",
-            "{workspaceRoot}/my-app/.next/!(cache)",
-          ],
-        },
-        "my-serve": {
-          "command": "next dev",
-          "options": {
-            "cwd": "my-app",
-          },
-        },
-        "my-serve-static": {
-          "executor": "@nx/web:file-server",
-          "options": {
-            "buildTarget": "my-build",
-            "port": 3000,
-            "spa": false,
-            "staticFilePath": "{projectRoot}/out",
-          },
-        },
-        "my-start": {
-          "command": "next start",
-          "dependsOn": [
-            "my-build",
-          ],
-          "options": {
-            "cwd": "my-app",
+            "my-serve": {
+              "command": "next dev",
+              "options": {
+                "cwd": "my-app",
+              },
+            },
+            "my-serve-static": {
+              "executor": "@nx/web:file-server",
+              "options": {
+                "buildTarget": "my-build",
+                "port": 3000,
+                "spa": false,
+                "staticFilePath": "{projectRoot}/out",
+              },
+            },
+            "my-start": {
+              "command": "next start",
+              "dependsOn": [
+                "my-build",
+              ],
+              "options": {
+                "cwd": "my-app",
+              },
+            },
           },
         },
       },
     },
-  },
-}
+  ],
+]
 `;
 
 exports[`@nx/next/plugin root projects should create nodes 1`] = `
-{
-  "projects": {
-    ".": {
-      "root": ".",
-      "targets": {
-        "build": {
-          "cache": true,
-          "command": "next build",
-          "dependsOn": [
-            "^build",
-          ],
-          "inputs": [
-            "default",
-            "^production",
-            {
-              "externalDependencies": [
-                "next",
+[
+  [
+    "next.config.js",
+    {
+      "projects": {
+        ".": {
+          "root": ".",
+          "targets": {
+            "build": {
+              "cache": true,
+              "command": "next build",
+              "dependsOn": [
+                "^build",
+              ],
+              "inputs": [
+                "default",
+                "^production",
+                {
+                  "externalDependencies": [
+                    "next",
+                  ],
+                },
+              ],
+              "options": {
+                "cwd": ".",
+                "tty": false,
+              },
+              "outputs": [
+                "{projectRoot}/.next",
+                "{projectRoot}/.next/!(cache)",
               ],
             },
-          ],
-          "options": {
-            "cwd": ".",
-            "tty": false,
-          },
-          "outputs": [
-            "{projectRoot}/.next",
-            "{projectRoot}/.next/!(cache)",
-          ],
-        },
-        "dev": {
-          "command": "next dev",
-          "options": {
-            "cwd": ".",
-          },
-        },
-        "serve-static": {
-          "executor": "@nx/web:file-server",
-          "options": {
-            "buildTarget": "build",
-            "port": 3000,
-            "spa": false,
-            "staticFilePath": "{projectRoot}/out",
-          },
-        },
-        "start": {
-          "command": "next start",
-          "dependsOn": [
-            "build",
-          ],
-          "options": {
-            "cwd": ".",
+            "dev": {
+              "command": "next dev",
+              "options": {
+                "cwd": ".",
+              },
+            },
+            "serve-static": {
+              "executor": "@nx/web:file-server",
+              "options": {
+                "buildTarget": "build",
+                "port": 3000,
+                "spa": false,
+                "staticFilePath": "{projectRoot}/out",
+              },
+            },
+            "start": {
+              "command": "next start",
+              "dependsOn": [
+                "build",
+              ],
+              "options": {
+                "cwd": ".",
+              },
+            },
           },
         },
       },
     },
-  },
-}
+  ],
+]
 `;
diff --git a/packages/next/src/plugins/plugin.spec.ts b/packages/next/src/plugins/plugin.spec.ts
index 44bc72d19e795..9fecb15a5c84b 100644
--- a/packages/next/src/plugins/plugin.spec.ts
+++ b/packages/next/src/plugins/plugin.spec.ts
@@ -1,11 +1,11 @@
 import { CreateNodesContext } from '@nx/devkit';
 import type { NextConfig } from 'next';
 
-import { createNodes } from './plugin';
+import { createNodesV2 } from './plugin';
 import { TempFs } from '@nx/devkit/internal-testing-utils';
 
 describe('@nx/next/plugin', () => {
-  let createNodesFunction = createNodes[1];
+  let createNodesFunction = createNodesV2[1];
   let context: CreateNodesContext;
 
   describe('root projects', () => {
@@ -30,7 +30,7 @@ describe('@nx/next/plugin', () => {
       const nextConfigPath = 'next.config.js';
       mockNextConfig(nextConfigPath, {});
       const nodes = await createNodesFunction(
-        nextConfigPath,
+        [nextConfigPath],
         {
           buildTargetName: 'build',
           devTargetName: 'dev',
@@ -71,7 +71,7 @@ describe('@nx/next/plugin', () => {
     it('should create nodes', async () => {
       mockNextConfig('my-app/next.config.js', {});
       const nodes = await createNodesFunction(
-        'my-app/next.config.js',
+        ['my-app/next.config.js'],
         {
           buildTargetName: 'my-build',
           devTargetName: 'my-serve',
diff --git a/packages/next/src/plugins/plugin.ts b/packages/next/src/plugins/plugin.ts
index 396b24b15d0c6..aa61b29d5e037 100644
--- a/packages/next/src/plugins/plugin.ts
+++ b/packages/next/src/plugins/plugin.ts
@@ -1,12 +1,15 @@
 import {
   CreateDependencies,
   CreateNodes,
+  CreateNodesV2,
   CreateNodesContext,
   detectPackageManager,
   NxJsonConfiguration,
   readJsonFile,
   TargetConfiguration,
   writeJsonFile,
+  createNodesFromFiles,
+  logger,
 } from '@nx/devkit';
 import { dirname, join } from 'path';
 
@@ -17,6 +20,7 @@ import { workspaceDataDirectory } from 'nx/src/utils/cache-directory';
 import { calculateHashForCreateNodes } from '@nx/devkit/src/utils/calculate-hash-for-create-nodes';
 import { getLockFileName } from '@nx/js';
 import { loadConfigFile } from '@nx/devkit/src/utils/config-utils';
+import { hashObject } from 'nx/src/devkit-internals';
 
 export interface NextPluginOptions {
   buildTargetName?: string;
@@ -25,69 +29,124 @@ export interface NextPluginOptions {
   serveStaticTargetName?: string;
 }
 
-const cachePath = join(workspaceDataDirectory, 'next.hash');
-const targetsCache = readTargetsCache();
+const nextConfigBlob = '**/next.config.{js,cjs,mjs}';
 
-function readTargetsCache(): Record<
-  string,
-  Record<string, TargetConfiguration>
-> {
+function readTargetsCache(
+  cachePath: string
+): Record<string, Record<string, TargetConfiguration<NextPluginOptions>>> {
   return existsSync(cachePath) ? readJsonFile(cachePath) : {};
 }
 
-function writeTargetsToCache() {
-  const oldCache = readTargetsCache();
+function writeTargetsToCache(
+  cachePath: string,
+  targetsCache: Record<string, TargetConfiguration<NextPluginOptions>>
+) {
+  const oldCache = readTargetsCache(cachePath);
   writeJsonFile(cachePath, {
     ...oldCache,
     ...targetsCache,
   });
 }
 
+/**
+ * @deprecated The 'createDependencies' function is now a no-op. This functionality is included in 'createNodesV2'.
+ */
 export const createDependencies: CreateDependencies = () => {
-  writeTargetsToCache();
   return [];
 };
 
-export const createNodes: CreateNodes<NextPluginOptions> = [
-  '**/next.config.{js,cjs,mjs}',
-  async (configFilePath, options, context) => {
-    const projectRoot = dirname(configFilePath);
-
-    // Do not create a project if package.json and project.json isn't there.
-    const siblingFiles = readdirSync(join(context.workspaceRoot, projectRoot));
-    if (
-      !siblingFiles.includes('package.json') &&
-      !siblingFiles.includes('project.json')
-    ) {
-      return {};
+export const createNodesV2: CreateNodesV2<NextPluginOptions> = [
+  nextConfigBlob,
+  async (configFiles, options, context) => {
+    const optionsHash = hashObject(options);
+    const cachePath = join(workspaceDataDirectory, `next-${optionsHash}.json`);
+    const targetsCache = readTargetsCache(cachePath);
+
+    try {
+      return await createNodesFromFiles(
+        (configFile, options, context) =>
+          createNodesInternal(configFile, options, context, targetsCache),
+        configFiles,
+        options,
+        context
+      );
+    } finally {
+      writeTargetsToCache(cachePath, targetsCache);
     }
-    options = normalizeOptions(options);
+  },
+];
 
-    const hash = await calculateHashForCreateNodes(
-      projectRoot,
-      options,
-      context,
-      [getLockFileName(detectPackageManager(context.workspaceRoot))]
+/**
+ * @deprecated This is replaced with {@link createNodesV2}. Update your plugin to export its own `createNodesV2` function that wraps this one instead.
+ * This function will change to the v2 function in Nx 21.
+ */
+export const createNodes: CreateNodes<NextPluginOptions> = [
+  nextConfigBlob,
+  async (configFilePath, options, context) => {
+    logger.warn(
+      '`createNodes` is deprecated. Update your plugin to utilize createNodesV2 instead. In Nx 21, this will change to the createNodesV2 API.'
     );
 
-    targetsCache[hash] ??= await buildNextTargets(
+    const optionsHash = hashObject(options);
+    const cachePath = join(workspaceDataDirectory, `next-${optionsHash}.json`);
+    const targetsCache = readTargetsCache(cachePath);
+
+    const result = await createNodesInternal(
       configFilePath,
-      projectRoot,
       options,
-      context
+      context,
+      targetsCache
     );
-
-    return {
-      projects: {
-        [projectRoot]: {
-          root: projectRoot,
-          targets: targetsCache[hash],
-        },
-      },
-    };
+    writeTargetsToCache(cachePath, targetsCache);
+    return result;
   },
 ];
 
+async function createNodesInternal(
+  configFilePath: string,
+  options: NextPluginOptions,
+  context: CreateNodesContext,
+  targetsCache: Record<
+    string,
+    Record<string, TargetConfiguration<NextPluginOptions>>
+  >
+) {
+  const projectRoot = dirname(configFilePath);
+
+  // Do not create a project if package.json and project.json isn't there.
+  const siblingFiles = readdirSync(join(context.workspaceRoot, projectRoot));
+  if (
+    !siblingFiles.includes('package.json') &&
+    !siblingFiles.includes('project.json')
+  ) {
+    return {};
+  }
+  options = normalizeOptions(options);
+
+  const hash = await calculateHashForCreateNodes(
+    projectRoot,
+    options,
+    context,
+    [getLockFileName(detectPackageManager(context.workspaceRoot))]
+  );
+
+  targetsCache[hash] ??= await buildNextTargets(
+    configFilePath,
+    projectRoot,
+    options,
+    context
+  );
+
+  return {
+    projects: {
+      [projectRoot]: {
+        root: projectRoot,
+        targets: targetsCache[hash],
+      },
+    },
+  };
+}
+
 async function buildNextTargets(
   nextConfigPath: string,
   projectRoot: string,