In this research, a complete vision of using the technology of the smart grid system with a new communication, information technology techniques and devices has been investigated. In addition, a strategy of using a hybrid or private cloud for security, sorting and data storage that is obtained from the power grid has been suggested. The proposed strategy suggested that; construct a wireless sensor network with high reliability and performance for monitoring the various important measurement parameters in the power system grid. All data coming from a large and complicated wireless sensor network spread along the power system can be sorted and classified in the cloud using data processing hardware with high performance and good accuracy. Therefore, an automated decision making in the case of the system outage or fault current condition can be programmed depending on the sorting and analysis of the received data. This will develop the power system design using smart grid architecture to enhance the performance for verifying the various demand applications in power systems (faults, security, monitoring, and control), integrate with available renewable energy sources (wind or solar or biomass or wave energy) and enhance the storage capability and reliability in power system grid to deal with the suddenly change in the power system flow.