Most of currently deployed Grid systems employ hierarchical or centralized approaches to simplify system management. However, the approaches cannot satisfy the requirements of complex Grid applications which involve hundreds or thousands of geographically distributed nodes. This paper proposes a Dynamic and Scalable Storage Management (DSSM) architecture for Grid Oriented Storage (GOS) devices. Since large-scale data intensive applications frequently involve a high degree of data access locality, the DSSM divides GOS nodes into multiple geographically distributed domains to facilitate the locality and simplify the intra-domain storage management. Dynamic GOS agents selected from the domains are organized as a virtual agent domain in a Peer-to-Peer (P2P) manner to coordinate multiple domains. As only the domain agents participate in the inter-domain communication, system wide information dissemination can be done far more efficiently than flat flooding. Grid service based storage resources are adopted to stack simple modular service piece by piece as demand grows. The decentralized architecture of DSSM avoids the hierarchical or centralized approaches of traditional Grid architectures, eliminates large-scale flat flooding of unstructured P2P systems, and provides an interoperable, seamless, and infinite storage pool in a Grid environment. The DSSM architecture is validated by a proof-of-concept prototype system.