RadGrid for ASP.NET AJAX supports client-side binding to web services or page methods as demonstrated in this online demo of the product. In order to assign data source for the grid and refresh its state on the client, utilize the set_dataSource(dataSource) and dataBind() methods from its client-side API. Keep in mind that the data source passed as an argument to the set_dataSource method should have JSON signature which can be serialized by a web service or a page method.
The demo illustrates how to:
The source for the grid is generated via web service (MyWebService.asmx).