A friend just passed me this link. I’m thinking it for generating megadungeons and even Towns, I really love the “rooms” array.
Stay cool 
Pretty to watch, but I’m confused by the result.
Frank
I think it’s just an example of the process that their upcoming video game uses to create procedurally generated dungeons. Best case scenario is to just use it for inspiration. (I, too, wonder what the difference is between a red room and a blue room.)
Lava/water, of course.
A series of shapes are generated.
Some of them are designated as rooms, Red.
A network is overlayed on them where the rooms are nodes.
The rest of the shapes are shuffled around until the nodes form an interconnected network, meaning that no part is isolated from the rest.
The blue “rooms” then go on a diet until they assume shapes dictated by societal norms.
The result is the dungeon that we all know and love.