This article addresses the performance of data replication protocol in terms of data availability and communication costs. Specifically, we present a new protocol called Three Dimensional Grid Structure (TDGS) protocol, to manage data replication in distributed system. The protocol provides high availability for read and write operations with limited fault-tolerance at low communication cost. With TDGS protocol, a read operation is limited to two data copies, while a write operation is required with minimal number of copies. In comparison to other protocols. TDGS requires lower communication cost for an operation, while providing higher data availability.