Various clips posted online shows the huge flashes illuminating the pitch black sky.
The shocking scene, which onlookers claim was accompanied by strange noises, was said to be caused when two electric transformers exploded in the Mexican borough of Cuauhtemoc on January 13.
However, it didn’t take long for viewers to break into a frenzy and start rumours of an alien invasion.
Many witnesses uploaded footage online, captioned with emojis of UFOs and aliens.
““Strange lights in the Mexico City sky. The aliens are coming.””
One viewer wrote:
One viewer wrote: “Strange lights in the Mexico City sky. The aliens are coming.”
Another added: “Weird lights in the sky, we are all going to die.”
Others compared the lights to the ones seen during the devastating earthquake of September 2017 that killed 370 people and left over 6,000 injured.
“Strange lights in the Mexico City sky. The aliens are coming.”
There is no report on any environmental damages caused by the explosion.
Mexico City is home to almost nine million inhabitants and is visited by close to three million tourists per year.
It comes after a similar incident was filmed over Queens, New York City, last year.