In case you don't know, the music is called "Wizards in Winter" by a band called Trans-Siberian Orchestra.
The clip you are watching is the result of a guy in the US (Mason, Ohio to be exact) who set up the lights to work with a computer module. This module synchronized the lights to activate in a set sequence that matched the music. The music was played over a short range FM band so as not to annoy his neighbours.
This is not time-lapse photography, nor is it computer generated. This is real, and was taken in 2004.
More details of the guy in question can be found at his Wikipedia entry.