You know what "the map is not the territory" means, right? That one should not make a confusion between reality and (any form of) bureacracy. Now, technically any interaction a real person has on the net is influenced by the map of the person, i.e. by the classification of that real individual. The classification does not have to be geographically centralized, it is enough that the tags the real individual is blessed with by algorithms can travel effectively with the individual. This is technically possible and it is the root of the problem. So not that _they_ know, but that my interactions with other people are mediated not by the territory, but by the map. Who owns the map owns the territory, this way.
You can see that this is the problem in many places. One of those places which springs to mind is that, for example, Google argues that they are just like any user of the (infrastructure of the) internet. But whenever two individuals interact via anything Google, the communication goes mediated by Google. In a sense it is centralized, and there is a centralized map, even if physically spread between variously located data centers.