It was probably my use of the word 'controller' that is a bit confusing.
I just connect them to a microcontroller pin and be done with it. I power them separately off a power bank (my LEDs are almost always worn, if they are static I just use an off-the-shelf 5V supply).
I use a few hundred at most and in those cases I just feed power at several points in the chain to reduce resistive losses in the wiring. But yeah I'm kinda interested what kind of huge installations would need that and how they work.