niche

I'm going to be building shower niche in an upcoming remodel and, when everything is stripped down, drywall will be on the other side of the studs. What's the best practice for constructing a niche in this situation? I imagine that waterproofing and tiling directly on the back of the drywall is...

https://www.pinterest.com/pin/293930313156098713/ Does anyone know how to achieve this effect? How do you waterproof/recess the LED lighting? How do you make it replacable if the LED strip dies?